Figure 8: Welfare Losses, ∆W0 / W0, for German (EVS) Data; Gender = 0 (male)
or 1 (female), γ = 2, δ = 0.97, Age = 50, Education = Middle *
Net worth
Net w orth
Noncapital Income
B 21,872
A 36,444
C 49,264
* Dotted vertical lines indicate age-specific quantiles for Net worth (25%, 50% and 75%); age-specific
quantiles for Labor Income are labeled by △ (25%), O (50%) and V (75%).
51
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