According to Pareto, the distribution of income depends on “the nature
of the people comprising a society, on the organization of the latter,
and, also, in part, on chance.” An overlapping generations model of marriage,
fertility and income distribution is According to Pareto, the distribution of income depends on “the nature
of the people comprising a society, on the organization of the latter,
and, also, in part, on chance.” An overlapping generations model of marriage,
fertility and income distribution is developed here. The “nature of
the people” is captured by attitudes toward marriage, divorce, fertility, and
children. Singles search for mates in a marriage market. They are free to
accept or reject marriage proposals. Married agents make their decisions
through bargaining about work, and the quantity and quality of children.
They can divorce. Social policies, such as child tax credits or child support
requirements, re‡ect the “organization of the (society).” Finally, “chance”
is modelled by randomness in income, opportunities for marriage, and marital
bliss.[+][-]
Description:
Publicado también en la serie: UCLA Department of Economics. Penn CARESS. Working paper