This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Microeconomics: Vol. 2 No. 4 (November 2010)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Micro - All Issues

AEJ: Micro Forthcoming Articles

Inequality and Markets: Some Implications of Occupational Diversity

Article Citation

Mookherjee, Dilip, and Debraj Ray. 2010. "Inequality and Markets: Some Implications of Occupational Diversity." American Economic Journal: Microeconomics, 2(4): 38-76.

DOI: 10.1257/mic.2.4.38

Abstract

This paper studies income distribution in an economy with borrowing constraints. Parents leave both financial and educational bequests; these determine the occupational choices of children. Occupational returns are determined by market conditions. If the span of occupational investments is large, long-run wealth distributions display persistent inequality. With a "rich" set of occupations, so that training costs form an interval, the distribution is unique and the average return to education must rise with educational investment. This finding contrasts with the usual presumption of diminishing returns to human capital. It is the central testable proposition of this paper. (JEL D14, D31, J24)

Article Full-Text Access

Full-text Article

Authors

Mookherjee, Dilip (Boston U)
Ray, Debraj (NYU)

JEL Classifications

D14: Personal Finance
D31: Personal Income, Wealth, and Their Distributions
J24: Human Capital; Skills; Occupational Choice; Labor Productivity

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Microeconomics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Micro - All Issues

AEJ: Micro - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us