Sorting and Long-Run Inequality¤
نویسندگان
چکیده
Many social commentators have raised concerns over the possibility that increased sorting in society can lead to greater inequality. To investigate this, we construct a dynamic model of intergenerational education acquisition, fertility and marital sorting and parameterize the steady state to match several basic empirical ...ndings. We ...nd that increased marital sorting will signi...cantly increase income inequality. Four factors are important to our ...ndings: a negative correlation between fertility and education, a decreasing marginal e¤ect of parental education on children’s years of education, wages that are sensitive to the relative supply of skilled workers, and borrowing constraints that a¤ect educational attainment for some low
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