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The Distributional Effects of Peer and Aspirational Pressure

Research output: Working paper

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The Distributional Effects of Peer and Aspirational Pressure. / Angelopoulos, Konstantinos; Lazarakis, Spyros; Malley, James.
CES Ifo, 2019. (CESifo Working Paper; Vol. 7838).

Research output: Working paper

Harvard

Angelopoulos, K, Lazarakis, S & Malley, J 2019 'The Distributional Effects of Peer and Aspirational Pressure' CESifo Working Paper, vol. 7838, CES Ifo. <https://www.cesifo.org/en/publications/2019/working-paper/distributional-effects-peer-and-aspirational-pressure>

APA

Angelopoulos, K., Lazarakis, S., & Malley, J. (2019). The Distributional Effects of Peer and Aspirational Pressure. (CESifo Working Paper; Vol. 7838). CES Ifo. https://www.cesifo.org/en/publications/2019/working-paper/distributional-effects-peer-and-aspirational-pressure

Vancouver

Angelopoulos K, Lazarakis S, Malley J. The Distributional Effects of Peer and Aspirational Pressure. CES Ifo. 2019 Oct 14. (CESifo Working Paper).

Author

Angelopoulos, Konstantinos ; Lazarakis, Spyros ; Malley, James. / The Distributional Effects of Peer and Aspirational Pressure. CES Ifo, 2019. (CESifo Working Paper).

Bibtex

@techreport{b0d4da48b17d4ac7807d76852bbb6881,
title = "The Distributional Effects of Peer and Aspirational Pressure",
abstract = "We develop a theoretical framework where the cross-sectional distributions of hours, earnings, wealth and consumption are determined jointly with a set of expenditure targets defining peer and aspirational pressure for members of different social classes. We show existence of a stationary socio-economic equilibrium, under idiosyncratic stochastic productivity and socio-economic class participation. We calibrate a model belonging to this framework using British data and find that it captures the main patterns of inequality, between and within the social groupings. We find that the effects of peer pressure on within-group inequality differ between groups. We also find that wealth and consumption inequality increase within groups who aspire to match social targets from a higher class, despite a reduction in within-group inequality in hours and earnings.",
keywords = "inequality, incomplete markets, peer pressure, aspirations",
author = "Konstantinos Angelopoulos and Spyros Lazarakis and James Malley",
year = "2019",
month = oct,
day = "14",
language = "English",
series = "CESifo Working Paper",
publisher = "CES Ifo",
type = "WorkingPaper",
institution = "CES Ifo",

}

RIS

TY - UNPB

T1 - The Distributional Effects of Peer and Aspirational Pressure

AU - Angelopoulos, Konstantinos

AU - Lazarakis, Spyros

AU - Malley, James

PY - 2019/10/14

Y1 - 2019/10/14

N2 - We develop a theoretical framework where the cross-sectional distributions of hours, earnings, wealth and consumption are determined jointly with a set of expenditure targets defining peer and aspirational pressure for members of different social classes. We show existence of a stationary socio-economic equilibrium, under idiosyncratic stochastic productivity and socio-economic class participation. We calibrate a model belonging to this framework using British data and find that it captures the main patterns of inequality, between and within the social groupings. We find that the effects of peer pressure on within-group inequality differ between groups. We also find that wealth and consumption inequality increase within groups who aspire to match social targets from a higher class, despite a reduction in within-group inequality in hours and earnings.

AB - We develop a theoretical framework where the cross-sectional distributions of hours, earnings, wealth and consumption are determined jointly with a set of expenditure targets defining peer and aspirational pressure for members of different social classes. We show existence of a stationary socio-economic equilibrium, under idiosyncratic stochastic productivity and socio-economic class participation. We calibrate a model belonging to this framework using British data and find that it captures the main patterns of inequality, between and within the social groupings. We find that the effects of peer pressure on within-group inequality differ between groups. We also find that wealth and consumption inequality increase within groups who aspire to match social targets from a higher class, despite a reduction in within-group inequality in hours and earnings.

KW - inequality

KW - incomplete markets

KW - peer pressure

KW - aspirations

M3 - Working paper

T3 - CESifo Working Paper

BT - The Distributional Effects of Peer and Aspirational Pressure

PB - CES Ifo

ER -