TY  - JOUR
AU  - Benhabib, Jess
AU  - Bisin, Alberto
AU  - Luo, Mi
TI  - Wealth Distribution and Social Mobility in the US: A Quantitative Approach
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 21721
PY  - 2015
Y2  - November 2015
DO  - 10.3386/w21721
UR  - http://www.nber.org/papers/w21721
L1  - http://www.nber.org/papers/w21721.pdf
N1  - Author contact info:
Jess Benhabib
Department of Economics
New York University
19 West 4th Street, 6th Floor
New York, NY 10012
Tel: 212/998-8971
Fax: 212/995-4186
E-Mail: jess.benhabib@nyu.edu

Alberto Bisin
Department of Economics
New York University
19 West 4th Street, 5th Floor
New York, NY 10012
Tel: 212/998-8916
Fax: 212/995-4186
E-Mail: alberto.bisin@nyu.edu

Mi Luo
Emory University
1602 Fishburne Ln.
Rm 330
Atlanta, GA 30307
E-Mail: mluo26@emory.edu
AB  - This paper attempts to quantitatively identify the factors that drive wealth dynamics in the U.S. and are consistent with its observed skewed cross-sectional distribution and social mobility. We concentrate on three critical factors: a skewed and persistent distribution of earnings, differential saving and bequest rates across wealth levels, and capital income risk. All of these factors are necessary for matching both distribution and mobility, with a distinct role in inducing wealth accumulation near the borrowing constraints, contributing to the thick top tail of wealth, and affecting upward and/or downward social mobility.
ER  -