An OLG model with endogenous but distinct power-laws in earnings and wealth

Authors

Armando R. Lopez-Velasco, The University of Texas Rio Grande ValleyFollow

Document Type

Article

Publication Date

12-2025

Abstract

An OLG model generates distinct but related power laws for wages, earnings, and wealth. CES-labor technology drives top-wage and top-earnings inequality, while top-wealth inequality stems from higher returns to wealthier agents which in turn amplifies top-earnings inequality.

Comments

Original published version available at https://doi.org/10.1016/j.econlet.2025.112718

Recommended Citation

Lopez-Velasco, A.R., 2025. An OLG model with endogenous but distinct power-laws in earnings and wealth. Economics Letters, p.112718. https://doi.org/10.1016/j.econlet.2025.112718

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Publication Title

Economics Letters

DOI

10.1016/j.econlet.2025.112718