This paper studies the determinants of income distribution and growth in an overlapping generations economy with heterogenous households. Our framework has the following main features: (1) heterogeneity of consumers with respect to wealth and parental human capital; (2) intergenerational...

The paper studies the effects of cross-country differences in the production process of human capital on income distribution and growth. Our overlapping generations economy has the following features: (1)consumers are heterogenous with respect to parental education and wealth;...