Several empirical studies in the literature have documented the existence of a positive correlation between income inequalitiy and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under...

This paper explores the use of an intertemporal job-search model in the investigation of within-cohort and between-cohort income inequality, the latter being generated by the heterogeneity of time preferences among cohorts of homogenous workers and the former by the cross-sectional turnover in...

This work adds to Lucas (2000) by providing analytical solutions to two problems that are solved only numerically by the author. The first part uses a theorem in control theory (Arrow's sufficiency theorem) to provide sufficiency conditions to characterize the optimum in a shopping-time problem...

This paper investigates the income inequality generated by a job search process when different cohorts of homogeneous workers are allowed to have different degrees of impatience. Using the fact the average wage under the invariant Markovian distribution is a decreasing function of the time...

In this paper I devise a new channel by means of which the (empirically documented) positive correlation between inflation and income inequality can be understood. Available empirical evidence reveals that inflation increases wage dispersion. For this reason, the higher the inflation rate, the...

Lawrance (1991) has shown, through the estimation of consumption Euler equations, that subjective rates of impatience (time preference) in the U.S. are three to five percentage points higher for house holds with lower average labor incomes than for those with higher labor income. From a...

Several empirical studies in the literature have documented the existence of a positive correlation between income inequality and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under...

Several works in the shopping-time and in the human-capital literature, due to the nonconcavity of the underlying Hamiltonian, use first-order conditions in dynamic optimization to characterize necessity, but not sufficiency, in intertemporal problems. In this work I choose one paper in each one...