Showing papers by "Robert E. Lucas published in 2012"
Journal Article•
TL;DR: The 1990s have witnessed several financial crises, of which the East Asia and Mexico tequila crises are perhaps the most well known as discussed by the authors, and the impact have these crises had on labor markets, household incomes, and poverty.
Abstract: The 1990s have witnessed several financial crises, of which the East Asia and Mexico tequila crises are perhaps the most well known What impact have these crises had on labor markets, household incomes, and poverty? Total employment fell by much less than production declines and even increased in some cases However, these aggregates mask considerable churning in employment across sectors, employment status, and location Economies that experienced the sharpest currency depreciations suffered the deepest cuts in real wages, though deeper cuts in real wages relative to GDP were associated with smaller rises in unemployment To some extent, families smoothed their incomes through increased labor force participation and private transfers, though the limited evidence available suggests that wealthier families were better able to smooth consumption The initial impact of the crises was on the urban corporate sector, but rural households were affected as well and in some instances suffered deeper losses than d
47 citations
03 May 2012
TL;DR: In this article, two distinct explanations have been postulated for the observed positive correlation between incomes of children and those of their parents: parental wealth may restrict investment in human capital of children, or unobserved abilities that are positively associated with earnings may be passed between generations, either genetically or through the home environment, resulting in an auto-regressive process in earnings across generations.
Abstract: The authors are most grateful to the Academy of Finland for partial funding of this study under project number 52198. Two distinct explanations have been postulated for the observed positive correlation between incomes of children and those of their parents. Where credit constraints are prevalent, parental wealth may restrict investment in human capital of children. Alternatively, unobserved abilities that are positively associated with earnings may be passed between generations, either genetically or through the home environment, resulting in an auto-regressive process in earnings across generations. Empirical distinction between these two hypotheses has proved elusive. A model combining both features is outlined and estimated here. The data are drawn from a very remarkable and largely unexplored panel encompassing the entire Finnish
2 citations