Related papers: Income Inequality, Cause and Cure
This paper studies the income fluctuation problem with capital income risk (i.e., dispersion in the rate of return to wealth). Wealth returns and labor earnings are allowed to be serially correlated and mutually dependent. Rewards can be…
Economic inequality emerges from the interplay between regional growth-rate differences and the interaction network that couples regions. We propose a minimal income-dynamics model, where heterogeneity is governed by growth-rate…
We study the interplay of information and prior (mis)perceptions in a Phelps-Aigner-Cain-type model of statistical discrimination in the labor market. We decompose the effect on average pay of an increase in how informative observables are…
Who benefits from expanding transport networks? While designed to improve mobility, such interventions can also create inequality. In this paper, we show that disparities arise not only from the structure of the network itself but also from…
We estimate the dynamic distributional effects of financial shocks in the Euro Area using survey-based microdata on personal incomes. We find that positive financial shocks increase inequality, with heterogeneity across different income…
The excessive compensation packages of CEOs of U.S. corporations in recent years have brought to the foreground the issue of fairness in economics. The conventional wisdom is that the free market for labor, which determines the pay…
This paper examines whether artificial intelligence (AI) acts as a substitute or complement to human labour, drawing on 12 million online job vacancies from the United States spanning 2018-2023. We adopt a two-pronged approach: first,…
In the context of a large class of stochastic processes used to describe the dynamics of wealth growth, we prove a set of inequalities establishing necessary and sufficient conditions in order to avoid infinite wealth concentration. These…
In this letter we present a stochastic dynamic model which can explain economic cycles. We show that the macroscopic description yields a complex dynamical landscape consisting of multiple stable fixed points, each corresponding to a split…
To simultaneously overcome the limitation of the Gini index in that it is less sensitive to inequality at the tails of income distribution and the limitation of the inter-decile ratios that ignore inequality in the middle of income…
As artificial intelligence (AI) continues to reshape the workforce, its current trajectory raises pressing questions about its ultimate purpose. Why does job automation dominate the agenda, even at the expense of human agency and equity?…
We consider the problem of dividing items between individuals in a way that is fair both in the sense of distributional fairness and in the sense of not having disparate impact across protected classes. An important existing mechanism for…
In this paper we derive inferential results for a new index of inequality, specifically defined for capturing significant changes observed both in the left and in the right tail of the income distributions. The latter shifts are an apparent…
Computers are increasingly used to make decisions that have significant impact in people's lives. Often, these predictions can affect different population subgroups disproportionately. As a result, the issue of fairness has received much…
In this paper, we examine the wide-ranging impact of artificial intelligence on society, focusing on its potential to both help and harm global equity, cognitive abilities, and economic stability. We argue that while artificial intelligence…
The development of educational AI (AIEd) systems has often been motivated by their potential to promote educational equity and reduce achievement gaps across different groups of learners -- for example, by scaling up the benefits of…
This paper investigates the relationships between economic growth, investment in human capital and income equality in Turkey. The conclusion drawn based on the data from the OECD and the World Bank suggests that economic growth can improve…
Income inequality between different races in the U.S. is especially large. This difference is even larger when gender is involved. In a complementary study, we have developed a dynamic microeconomic model accurately describing the evolution…
There is significant concern that technological advances, especially in Robotics and Artificial Intelligence (AI), could lead to high levels of unemployment in the coming decades. Studies have estimated that around half of all current jobs…
The advent of powerful prediction algorithms led to increased automation of high-stake decisions regarding the allocation of scarce resources such as government spending and welfare support. This automation bears the risk of perpetuating…