A Simple Model of Inequality, Occupational Choice, and Development

Posted: 10 Jan 2003

See all articles by Maitreesh Ghatak

Maitreesh Ghatak

London School of Economics (LSE) - Department of Economics

Neville Nien-Huei Jiang

Vanderbilt University - College of Arts and Science - Department of Economics

Abstract

We analyze a simple and tractable model of occupational choice in the presence of credit market imperfections. We examine the effect of parameters governing technology and transaction costs, and history, in terms of the initial wealth distribution, in determining the long-term wealth distribution and the level of per capita income of an economy.

Keywords: Wealth inequality, Occupational choice, Poverty traps

JEL Classification: D31, D82, O10

Suggested Citation

Ghatak, Maitreesh and Jiang, Neville Nien-Huei, A Simple Model of Inequality, Occupational Choice, and Development. Available at SSRN: https://ssrn.com/abstract=368122

Maitreesh Ghatak (Contact Author)

London School of Economics (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom
44 20 7852 3568 (Phone)
44 20 7955 6951 (Fax)

HOME PAGE: http://sticerd.lse.ac.uk/dps/adds/ghatak/cv-lse-sept02.pdf

Neville Nien-Huei Jiang

Vanderbilt University - College of Arts and Science - Department of Economics ( email )

Box 1819 Station B
Nashville, TN 37235
United States

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