10.17889/E109546
Ventura, Gustavo
Huggett, Mark
Yaron, Amir
Replication data for: Sources of Lifetime Inequality
ICPSR Inter-university Consortium for Political and Social Research
2010
10.1257/aer.101.7.2923
10.1257/aer.101.7.2923
V0
Is lifetime inequality mainly due to differences across people established
early in life or to differences in luck experienced over the working lifetime? We answer this question within a model that features idiosyncratic shocks to human capital, estimated directly from data, as well as heterogeneity in ability to learn, initial human capital, and initial wealth. We find that, as of age 23, differences in initial conditions account for more of the variation in lifetime earnings, lifetime wealth, and lifetime utility than do differences in shocks received
over the working lifetime. (JEL D31, D91, J24, J31)