Automation with Heterogeneous Agents: The Effect on Consumption Inequality

In this paper, I study technological change as a candidate for the observed increase in consumption inequality in the United States. I build an incomplete market model with educational choice combined with a task-based model on the production side. I consider two channels through which technology affects inequality: the skill that an agent can supply in the labor market and the level of capital she owns. In a quantitative analysis, I show that (i) the model replicates the increase in consumption inequality between 1981 and 2008 in the US (ii) educational choice and the return to wealth are quantitatively important in explaining the increase in consumption inequality.

18. November 2022

Authors Tommaso Santini

Whom to contact

For Researchers

Tommaso Santini, PhD
Tommaso Santini, PhD

If you have any further questions please contact me.

+49 345 7753-784 Request per E-Mail

For Journalists

Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoSupported by the BMWK