Figure 9: Welfare Losses, ∆W0 / W0, for German (EVS) Data; Gender = 0
(male), γ = 2, δ = 0.97, Age = 50, Education = Low, Middle, or High *
Education = Low
Education = Middle
Education = High
B
B
0.50 й B
B
AB
5
I
÷j
φ
0.40" B
0.30 й
A
A
A
A
A
0.20" AC
CCC
AB
AC A
C
BB
BB
AC AC AC A
. B
B
B
B
B
■ B
B
■ A
A
A
A
AB
BA
BA
BB
AC AC
BBB
AA
CCC
■ B
B
B
B
b B
B
B
A
A
A
A
A
BA
BAB
CCCAB
CAB
AC A
C
BB
BB
AA
CC
0 50,000 100,000 150,000 200,000
Net w orth
50,000 100,000 150,000 200,000
Net w orth
0 50,000 100,000 150,000 200,000
Net worth
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%).
52