Human Capital and Earnings Distribution Dynamics

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dc.contributor.authorHuggett, Mark
dc.contributor.authorVentura, Gustavo
dc.contributor.authorYaron, Amir
dc.date2023-05-17T14:42:11.000
dc.date.accessioned2023-05-22T19:15:49Z
dc.date.available2023-05-22T19:15:49Z
dc.date.issued2006-01-01
dc.date.submitted2016-06-17T07:07:45-07:00
dc.description.abstractEarnings heterogeneity plays a crucial role in modern macroeconomics. We document that mean earnings and measures of earnings dispersion and skewness all increase in US data over most of the working life-cycle for a typical cohort as the cohort ages. We show that (i) a human capital model can replicate these properties from the right distribution of initial human capital and learning ability, (ii) differences in learning ability are essential to produce an increase in earnings dispersion over the life cycle and (iii) differences in learning ability account for the bulk of the variation in the present value of earnings across agents. These findings emphasize the need to further understand the role and origins of initial conditions.
dc.identifier.urihttps://repository.upenn.edu/handle/20.500.14332/34358
dc.legacy.articleid1157
dc.legacy.fields10.1016/j.jmoneco.2005.10.013
dc.legacy.fulltexturlhttps://repository.upenn.edu/cgi/viewcontent.cgi?article=1157&context=fnce_papers&unstamped=1
dc.rights© 2006. This manuscript version is made available under the CC-BY-NC-ND 4.0 license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
dc.source.beginpage265
dc.source.endpage290
dc.source.issue263
dc.source.issue2
dc.source.journalFinance Papers
dc.source.journaltitleJournal of Monetary Economics
dc.source.peerreviewedtrue
dc.source.statuspublished
dc.source.volume53
dc.subject.otherFinance
dc.subject.otherFinance and Financial Management
dc.titleHuman Capital and Earnings Distribution Dynamics
dc.typeArticle
digcom.contributor.authorHuggett, Mark
digcom.contributor.authorVentura, Gustavo
digcom.contributor.authorYaron, Amir
digcom.identifierfnce_papers/263
digcom.identifier.contextkey8744392
digcom.identifier.submissionpathfnce_papers/263
digcom.typearticle
dspace.entity.typePublication
upenn.schoolDepartmentCenterFinance Papers
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