In contrast, the standard exogenous constraint model cannot simultaneously explain observations (i) and (ii) under standard assumptions about preferences; it is also silent on the rise in private lending. By incorporating both public and private lending, our framework offers new insights...

Based on our estimates (in progress), we plan to analyze how and why the following have changed over time and across cohorts: (i) overall and within-group wage inequality, (ii) lifecycle wage growth, (iii) job promotion rates, (iv) implied on-the-job investment. We are particularly interested in...