Wealth accumulation, on-the-job search and inequality

• 成果类型: Article
• 署名作者: Chaumont, Gaston; Shi, Shouyong
• 署名单位: University of Rochester; Queens University - Canada
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2022.03.009
• 发表日期: 2022
• 页码: 51-71
• 关键词: Wealth accumulation; On-the-job search; INEQUALITY; directed search

摘要

We study a directed search equilibrium with risk-averse workers who can search on the job and accumulate non-contingent assets under a borrowing limit. Search outcomes affect earnings and wealth accumulation. In turn, wealth and earnings affect search decisions by changing the optimal trade-off between the wage and the matching probability. The interaction between search and wealth provides important self-insurance. The calibrated model yields significant wage inequality as measured by the mean-min ratio in wages. We analyze the dynamic welfare effects of changes in unemployment insurance and find a relatively limited role for unemployment insurance as self-insurance significantly reduces consumption risk. (C) 2022 Elsevier B.V. All rights reserved.