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We investigate a model of one-to-one matching with transferable utility and general unobserved heterogeneity. Under a separability assumption that generalizes Choo and Siow (2006), we first show that the equilibrium matching maximizes a…
We decompose the U.S. consumption inequality distributional changes during the COVID-19 phase. Analyzing the Consumption Expenditure Interview Survey data, we decompose observed changes in consumption inequality into components attributable…
People learn about opportunities and actions by observing the experiences of their friends. We model how homophily -- the tendency to associate with similar others -- affects both the endogenous quality and diversity of the information…
The observation that individuals tend to be friends with people who are similar to themselves, commonly known as homophily, is a prominent and well-studied feature of social networks. Many machine learning methods exploit homophily to…
Social and political polarization is a significant source of conflict and poor governance in many societies. Thus, understanding its causes has become a priority of scholars across many disciplines. Here we demonstrate that shifts in…
This paper illustrates the intergenerational transmission of the gender gap in education among first and second-generation immigrants. Using the Current Population Survey (1994-2018), we find that the difference in female-male education…
We study how a behavior (an idea, buying a product, having a disease, adopting a cultural fad or a technology) spreads among agents in an a social network that exhibits segregation or homophily (the tendency of agents to associate with…
In studies of cultural differentiation, the joint mechanisms of homophily and influence have been able to explain how distinct cultural groups can form. While these mechanisms normally lead to cultural convergence, increased levels of…
The uneven distribution of wealth and individual economic capacities are among the main forces which shape modern societies and arguably bias the emerging social structures. However, the study of correlations between the social network and…
The distribution of household income is a central concern of modern economic policy due to its strong influence on life quality. Yet, non-expert audiences are unaware of the relationship between these two factors. To effectively communicate…
A recently proposed graph-theoretic metric, the influence gap, has shown to be a reliable predictor of the effect of social influence in two-party elections, albeit only tested on regular and scale-free graphs. Here, we investigate whether…
The evolution of global income distribution from 1988 to 2018 is analyzed using purchasing power parity exchange rates and well-established statistical distributions. This research proposes the use of two separate distributions to more…
In 2016, the majority of full-time employed women in the U.S. earned significantly less than comparable men. The extent to which women were affected by gender inequality in earnings, however, depended greatly on socio-economic…
A prominent threat to causal inference about peer effects over social networks is the presence of homophily bias, that is, social influence between friends and families is entangled with common characteristics or underlying similarities…
Physical contacts do not occur randomly, rather, individuals with similar socio-demographic and behavioural characteristics are more likely to interact among them, a phenomenon known as homophily. Concurrently, the same characteristics…
The prominent inequality of wealth and income is a huge concern especially in the United States. The likelihood of diminishing poverty is one valid reason to reduce the world's surging level of economic inequality. The principle of…
This study explores the link between the capital share and income inequality over the past four decades across 56 countries. Calculating the capital share from national accounts alongside top income share data from the World Inequality…
We investigate the long-time properties of a dynamic, out-of-equilibrium network of individuals holding one of two opinions in a population consisting of two communities of different sizes. Here, while the agents' opinions are fixed, they…
This paper develops a method to conduct causal inference in the presence of unobserved confounders by leveraging networks with homophily, a frequently observed tendency to form edges with similar nodes. I introduce a concept of asymptotic…
This chapter provides new evidence on educational inequality and reviews the literature on the causes and consequences of unequal education. We document large achievement gaps between children from different socio-economic backgrounds, show…