Mortality, Human Capital and Persistent Inequality

摘要: Available evidence suggests high intergenerational correlation of economic status and persistent disparities in health between the rich poor. This paper proposes a mechanism linking two. We introduce capital into two-period overlapping generations model. Private investment improves probability surviving from first period life to next and, along with education, enhances an individual’s labor productivity. Poorer parents are poor health, unable invest much reducing mortality risk improving their human capital. Consequently, they leave less for progeny. Despite convex preferences technologies, initial differences may perpetuate across when annuities markets imperfect.