TY  - UNPD
A1  - Reif, Magnus
A1  - Tesfaselassie, Mewael F.
A1  - Wolters, Maik
T1  - Technological growth and hours in the long run: theory and evidence
T2  - Working paper series / Institute for Monetary and Financial Stability ; 162
N2  - The authors present evidence of a new propagation mechanism for wealth inequality, based on differential responses, by education, to greater inequality at the start of economic life. The paper is motivated by a novel positive cross-country relationship between wealth inequality and perceptions of opportunity and fairness, which holds only for the more educated. Using unique administrative micro data and a quasi-field experiment of exogenous allocation of households, the authors find that exposure to a greater top 10% wealth share at the start of economic life in the country leads only the more educated placed in locations with above-median wealth mobility to attain higher wealth levels and position in the cohort-specific wealth distribution later on. Underlying this effect is greater participation in risky financial and real assets and in self-employment, with no evidence for a labor income, unemployment risk, or human capital investment channel. This differential response is robust to controlling for initial exposure to fixed or other time-varying local features, including income inequality, and consistent with self-fulfilling responses of the more educated to perceived opportunities, without evidence of imitation or learning from those at the top.
T3  - Working paper series / Institute for Monetary and Financial Stability - 162 
KW  - productivity growth
KW  - technological growth
KW  - working hours
KW  - employment
Y1  - 2021
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/61775
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-617752
UR  - https://www.imfs-frankfurt.de/de/forschung/imfs-working-papers/details/publication/technological-growth-and-hours-in-the-long-run-theory-and-evidence.html
PB  - Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability
CY  - Frankfurt am Main
ER  -