The name is absent

P rogenitors are distributed as in T able 1 accordingtoeducation and oc-
cupation.

T able 1: progenitors’ occupational distribution.

3 DYNAMICS...

T he Ong- run e≈ ects of inequality depend on the hypothesis about the in-
tergencraιtιonal transmission Cftechnical inetdency In particular; ifthe
transmission ofentrepreneurialability is due only to genetics (i.e. itis un-
cP ected by stochastic shocks), dynamics are determined exclusively by each
progenitors characteristics (wealth and technical ineCdency), the long- run
distribution ofwealth is strictly dependent on initial conditions and there
Cxistmultiple equi libria. O n the other hand, iftechnical ineC dency has a
stochasticcomponentthe dynamics ofaccumulation ofwealth are a M arkov
P rocess. The lowerthe genetics, the higherthe probability, foreach genera-
tion, toconverge to any steady state. The long-run distribution is ergodic.

Each panel of...cu∣re1 sketches the accumulation fUncticns fcreach kind
ofprogenitor': non-cuaii..edworker∙; cμaii..edworker∙; non-c∣uali...edent∣∙epre-
neur, quali.ed entrepreneur.

G iven preferences and human capitalinvestment, the lawofmotion ofa
non-cuali.ed worker’s wealth is:

^bt+ι = (1 i °) (^ibt⁺ w)                    _τt^b2 2_<(0^,h) 1          ⁽⁵⁾

°e;nq < °t ¹

The lawofmotion ofa cuali.ed worker’s wealth is instead:

^bt+ι = (1 i °) [i (^bt i ^h) ⁺ w ⁺ ±^h]

Iftheprogenitoris anon-cuali.edentrepreneur, thedynastyaccumulates
wealth accordingtothe followingecuation:

10

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