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  3. American Economic Review
  4. May 2014
  5. Macro-perspective on Asset Grants Programs: Occupational and Wealth Mobility

Macro-perspective on Asset Grants Programs: Occupational and Wealth Mobility

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Abstract

We provide a simple quantitative general equilibrium model of occupational choice with credit market frictions to analyze the aggregate and distributional effects of asset transfer programs. Asset transfer programs have a positive but transient effect on aggregate productivity, and a negative impact on the aggregate capital stock. On net they have a negative but small effect on per capita income. The effects are very heterogeneous across treated individuals. We compare the results in our model to those from recent randomized control trials and historical natural experiments.

Citation

Buera, Francisco J., Joseph P. Kaboski, and Yongseok Shin. 2014. "Macro-perspective on Asset Grants Programs: Occupational and Wealth Mobility." American Economic Review, 104 (5): 159-64. DOI: 10.1257/aer.104.5.159

Additional Materials

JEL Classification

  • H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity
  • J62 Job, Occupational, and Intergenerational Mobility; Promotion