Chris Busch, LMU Munich

"Individual Careers and Household Income Inequality" 

Abstract

In Denmark, household labor income inequality increased over the last decades. This reflects similar changes in other economies. We show that changes of the joint distribution of couples over individual careers accounts for about a fifth of this increase. The measure of careers builds around the occupation held by the age of 30, which statistically accounts well for regularities of individual labor market trajectories. The change of the joint distribution is driven by changes of the individual distributions over career types---in particular, more women entering high income careers. We set up a quantitative model in which individual career choices are taken in light of marriage market outcomes. Within this framework, we show that anticipated changes induced by marriage market outcomes matter as much as reduced direct costs for the shift in the marginal distribution of women towards high income careers.

Joint with Fane Groes and Rocio Madera

For more information about Chris Busch and his interesting work - link to his website.

Contact person: Manuel Menkhoff