Seminar in Applied Economics: Luigi Pistaferri

OCT 19, 2021 | 12:00 PM TO 1:45 PM

Luigi Pistaferri

Details

WHERE:

Zoom

WHEN:

October 19, 2021: 12:00 PM-1:45 PM

ADMISSION:

Free

SPONSOR:

PhD in Economics

Description

Fall 2021 Seminar in Applied Economics will feature Luigi Pistaferri. Professor Pistaferri will be presenting on "Assortative Mating and Wealth Inequality" on October 19th at 12pm via zoom.  

Please feel free to register and attend the event using the zoom link below: 

https://gc-cuny.zoom.us/meeting/register/tJwsceyrqj8rGtWqgpyHquyHz1-SGyREU0hB

Please note: Students, faculty, staff, alumni, and others who participate in any of the following seminars with their camera on or use a profile image are agreeing to have their video or image recorded solely for the purpose of creating a record for participants in this seminar to refer to, including those enrolled students who are unable to attend live.  If you are unwilling to consent to have your profile or video image recorded, be sure to keep your camera off and do not use a profile image. Likewise, participants who un-mute during the seminar or class and participate orally are agreeing to have their voices recorded.  If you are not willing to consent to have your voice recorded, you will need to keep your mute button activated and communicate exclusively using the "chat" feature, which allows participants to type questions and comments live. ‚Äč

 

Abstract:

Population data on capital income and wealth holdings for Norway allow us to measure asset positions and wealth returns before individuals marry and after the household is formed. Using these data we establish a number of novel facts. First, there is assortative mating on the basis of spouses own wealth. Second, assortative mating on own wealth dominates, and in fact statistically annihilates, assortative mating on parental wealth. Third, there is evidence that people match also on their personal returns to wealth. Finally, post-marriage returns on family wealth are largely explained by the return of the spouse with the highest pre-marriage return. This suggests that family wealth is largely managed by the spouse with the highest potential to grow family wealth. We use simulations to evaluate the effects of assortative mating on wealth, assortative mating on returns, and post-marriage allocation of wealth management tasks on wealth inequality and wealth concentration. Assortative mating on wealth is the dominant force explaining wealth concentration at marriage. Returns heterogeneity resulting from mating on returns and post-marriage allocation of wealth management between spouses plays a dominant role for explaining changes in wealth inequality as couples move through their life cycle.