In the United States, the employment rate is nearly flat across wealth quintiles with the exception of the first quintile. Correlations between wealth and employment are close to zero or moderately positive. However, incomplete markets models with a standard utility function counterfactually...

This paper presents an extension of the classical indivisible labor supply model of Rogerson (1988) and Hansen (1985). The model allows a firm to choose hours as well as employment in the presence of a nonlinear mapping from hours worked to labor services and employment frictions. Households...

Recent studies highlight the adverse effects of school closures in terms of average lifetime income loss, cross-sectional inequality, and intergenerational mobility. We use a simple model of human capital formation to compare two policy instruments that can address these negative consequences:...