It is mentioned that the OG-USA model captures the income heterogeneity among the population. In the lifetime earnings profiles section, I noticed that the life cycle income ability paths for 7 groups were calibrated, which correspond to labor income percentile (0.25, 0.25, 0.2, 0.1, 0.1, 0.09, 0.1). I am wondering if the equilibrium moves and to what extent it will move if we change the specification of the set of income percentile.
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It is mentioned that the OG-USA model captures the income heterogeneity among the population. In the lifetime earnings profiles section, I noticed that the life cycle income ability paths for 7 groups were calibrated, which correspond to labor income percentile (0.25, 0.25, 0.2, 0.1, 0.1, 0.09, 0.1). I am wondering if the equilibrium moves and to what extent it will move if we change the specification of the set of income percentile.