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Syllabus Lecture Notes Problem Sets Some Suggested Reading (SSR) Supplemental Guest Lectures Reports by Week Economics 350, Winter 2023: Problem Sets Problem Set Submission Instructions: Please feel free to submit your problem sets in groups of up to 4 people. Write the names of all of your collaborators at the top of your problem set. Please submit typed solutions. Number or label the question or the part of the question you are answering. Only one person from each group needs to submit a problem set. Please submit via Canvas. Problem Set I For Students and Auditors Assigned: Due: January 10, 2023 to TAs Related Reading: Gramm, Phil, Robert Ekelund, and John F. Early. (2022). The Myth of American Inequality: How Government Biases Policy Debate. New York, NY: Rowman and Littlefield. Saez, Emmanuel, and Gabriel Zucman. (2020). “The Rise of Income and Wealth Inequality in America: Evidence from Distributional Macroeconomic Accounts.” Journal of Economic Perspectives, 34(4):3-26. Empirical Problem Set I Assigned: January 11, 2023 Due: January 24, 2023 to TAs Related Resources: You may download the .zip file from Canvas, which contains all the data and relevant documentation required to answer the questions. The easiest way to open the dataset is to execute the .do file included in the folder, first specifying the  appropriate path name. If you prefer, you are also welcome to download the data directly from the source, found at this link: https://simba.isr.umich.edu/data/data.aspx. Note that you will be required to register for a free account. Contact the TAs for […]

Syllabus Lecture Notes Problem Sets Some Suggested Reading (SSR) Supplemental Guest Lectures Reports by Week Economics 350, Winter 2023: Guest Lectures Week 1, January 3, 2023 Thomas Coleman  The main topics are: Top Shares and the U.S. Income Distribution Tax Progressivity and Growth in Transfers I have listed the main readings for these two topics below, plus additional readings on related topics. Top Shares and U.S. Income Distribution With the publication of Piketty and Saez (2003), income distribution studies focused intensively on administrative data – income reported on tax returns – and top income shares – the fraction of overall income earned by the top 10% or 1% or 0.1% of the distribution. Main papers Piketty and Saez (2003): The original paper reporting distribution of administrative tax data, focusing specifically on “Top 1% shares”. Note that later work shows that these original tax data results are not representative of what economists consider income. Piketty, Saez, and Zucman (2018a): Updated – distribution of National Income – a more complete measure of all income. Auten and Splinter (2022): Alternative (and more reliable) estimates of the distribution of National Income Piketty, Saez, and Zucman (2019): Valuable debate (in the pages of the AER Papers &  Proceedings) between Piketty, Saez, Zucman on the one hand, Auten & Splinter on the other. Auten and Splinter (2019b): Debate in pages of the AER Papers & Proceedings Additional papers with background, and additional information Auten (2021): Review of some of the recent research Song, Lachanski, and Coleman […]

Syllabus Lecture Notes Problem Sets Some Suggested Reading (SSR) Supplemental Guest Lectures PRIVATE KEY Reports by Week Economics 350, Winter 2023: PRIVATE KEY   Week by Week Topics Inequality and Social Mobility: Surprising Facts and Measures That Challenge Conventional Claims Skills, Schools, and Learning-by-Doing Preferences: Preference and Habit Formation Tasks, Occupations, and Skills Labor Supply and Work Incentives Income Dynamics Family Influence: Marriage, Genes, Parenting, and Credit Constraints Neighborhood and Peer Effects Monopoly and Monopsony as Sources of Inequality Impacts of Public Policies Topics Covered Inequality, Social Mobility (within and across generations) Measures (wealth, income, earnings, health, employment and labor supply) The claims, the evidence and the quality of evidence Units of measurement (persons, households, extended families?) Transfers, welfare dependence, social transfer programs, and the growth of the welfare state Roles of: Abilities, skills, and prices; skill prices vs. rates of return Credit market constraints: Lending and borrowing Income Dynamics within the Lifecycle Life Cycle Skill and Preference Formation Parenting and production of traits, skills, and capacities Traditional human capital models (OJT; schooling) Learning by doing Tasks and Skills Definition of tasks and relationship with skills Hedonic models, sorting, and endogenous tasks Labor supply, incentives, and public policy Growth of the welfare state Disincentive to work Families Household models Marriage markets Fertility Markets and Technology Monopsony and monopoly: impacts and inequality Technology: AI, innovation, robots, and skill-biased technical change Neighborhood and Peer Effects: Is zip code destiny? Does geography matter for life outcomes? Sorting, peer effects, and neighborhoods Reports by […]

Syllabus Lecture Notes Problem Sets Some Suggested Reading (SSR) Supplemental Guest Lectures Reports by Week Economics 350, Winter 2023: Lecture Notes Week 1, January 3, 2023: Inequality and Social Mobility:  Surprising Facts and Measures That Challenge Conventional Claims Overview and Plan of the Course Syllabus Problem Set 1 Inequality in What? Income Measures and Wage Measures Guest Lecture, Thomas Coleman Three Narratives on Income Inequality: Importance of Good Data Analysis, Methodology, and Theory The Distribution of Household Income, 2018 Part 2: Role of Skills and Skill Prices in Explaining Inequality Part 3: Role of Taxes and Transfers in Post Tax-Transfer Outcomes Blundell Extract Social Mobility: Geography and Demography The Decline in Intergenerational Mobility After 1980 (Extract), Davis and Mazumder Inequality in Health Mortality Inequality in the United States and Europe, Janet Currie, Princeton University and NBER: Hannes Schwandt, Northwestern University and NBER Notes on the Roy Model and the Generalized Roy Model (Extract) Week 1, January 5, 2023: Inequality and Social Mobility:  Surprising Facts and Measures That Challenge Conventional Claims Slides from Lecture 1 Inequality in What? Income Measures and Wage Measures Guest Lecture, Thomas Coleman Three Narratives on Income Inequality: Importance of Good Data Analysis, Methodology, and Theory The Distribution of Household Income, 2018 Part 2: Role of Skills and Skill Prices in Explaining Inequality Part 3: Role of Taxes and Transfers in Post Tax-Transfer Outcomes Blundell Extract Social Mobility: Geography and Demography The Decline in Intergenerational Mobility After 1980 (Extract), Davis and Mazumder Inequality in Health Mortality Inequality in […]