scholarly journals An Empirical Model of Labor Supply in a Life-Cycle Setting

1981 ◽  
Vol 89 (6) ◽  
pp. 1059-1085 ◽  
Author(s):  
Thomas E. MaCurdy
Keyword(s):  
Life Cycle ◽  
Labor Supply ◽  
Empirical Model

scholarly journals An Empirical Model of Labor Supply in a Life Cycle Setting

10.3386/w0421 ◽  
1980 ◽  
Author(s):  
Thomas MaCurdy
Keyword(s):  
Life Cycle ◽  
Labor Supply ◽  
Empirical Model

scholarly journals EFFECTS OF PERMANENT AND TRANSITORY TAX CHANGES IN A LIFE-CYCLE LABOR SUPPLY MODEL WITH HUMAN CAPITAL

2015 ◽  
Vol 56 (2) ◽  
pp. 485-503 ◽  
Author(s):  
Michael P. Keane
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Labor Supply ◽  
Supply Model ◽  
Tax Changes

Micro and Macro Labor Supply Elasticities: A Reassessment of Conventional Wisdom

2012 ◽  
Vol 50 (2) ◽  
pp. 464-476 ◽  
Author(s):  
Michael Keane ◽  
Richard Rogerson
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Optimal Design ◽  
Labor Supply ◽  
Capital Accumulation ◽  
Conventional Wisdom ◽  
Human Capital Accumulation ◽  
Micro Data ◽  
Large Aggregate ◽  
Economic Issues

The response of aggregate labor supply to various changes in the economic environment is central to many economic issues, especially the optimal design of tax policies. Conventional wisdom based on studies in the 1980s and 1990s has long held that the analysis of micro data leads one to conclude that aggregate labor supply elasticities are quite small. In this paper we argue that this conventional wisdom does not hold up to empirically reasonable and relevant extensions of simple life cycle models that served as the basis for these conclusions. In particular, we show that several pieces of conventional wisdom fail in the presence of human capital accumulation or labor supply decisions that allow for adjustment along both the extensive and intensive margin. We conclude that previous estimates of small labor supply elasticities based on micro data are fully consistent with large aggregate labor supply elasticities. (JEL D91, E24, J22)

scholarly journals Revisiting the Role of Home Production in Life-Cycle Labor Supply

2015 ◽  
Author(s):  
R. Jason Faberman
Keyword(s):  
Life Cycle ◽  
Labor Supply ◽  
Home Production

The effects of social security in a life cycle family labor supply simulation model

1991 ◽  
Vol 46 (2) ◽  
pp. 199-226 ◽  
Author(s):  
Ben Craig ◽  
Raymond G. Batina
Keyword(s):  
Life Cycle ◽  
Social Security ◽  
Labor Supply ◽  
Simulation Model ◽  
Family Labor

Health, Human Capital, and Life Cycle Labor Supply

2014 ◽  
Vol 104 (5) ◽  
pp. 127-131 ◽  
Author(s):  
Charles Hokayem ◽  
James P. Ziliak
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Labor Supply ◽  
Strong Evidence ◽  
Capital Stock ◽  
Good Health ◽  
Learning By Doing ◽  
Health Capital ◽  
Supply Model

We use new PSID data on consumption and health, along with information on annual sick time, to estimate a structural labor supply model that incorporates a health capital stock with the traditional human capital learning-by-doing model. The estimates show strong evidence of learning by doing as well as strong persistence in health. However, the estimates reveal that time and money seem to have little effect on health consistent with 'flat of the curve' medicine. We find strong evidence that consumption and leisure are direct substitutes in preferences, and consumption and leisure are each utility complements with good health.

scholarly journals Nonconvexities, Retirement, and the Elasticity of Labor Supply

2013 ◽  
Vol 103 (4) ◽  
pp. 1445-1462 ◽  
Author(s):  
Richard Rogerson ◽  
Johanna Wallenius
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Labor Supply ◽  
Capital Accumulation ◽  
Credit Constraints ◽  
Elasticity Of Substitution ◽  
Human Capital Accumulation ◽  
Hours Worked ◽  
Younger Workers ◽  
Life Cycle Models

We consider two life cycle models of labor supply that use nonconvexities to generate retirement. In each case we derive a link between hours worked prior to retirement, the intertemporal elasticity of substitution for labor (IES), and the size of the nonconvexities. This link is robust to allowing for credit constraints and human capital accumulation by younger workers and suggests values for the IES that are .75 or higher. (JEL D91, J22, J24, J26)

scholarly journals A Labor Supply Elasticity Accord?

2011 ◽  
Vol 101 (3) ◽  
pp. 487-491 ◽  
Author(s):  
Lars Ljungqvist ◽  
Thomas J Sargent
Keyword(s):  
Life Cycle ◽  
Business Cycle ◽  
Labor Supply ◽  
Real Business Cycle ◽  
Government Institutions ◽  
Supply Elasticity ◽  
Career Length ◽  
Labor Supply Elasticity ◽  
Interior Solutions

A dispute about the size of the aggregate labor supply elasticity has been fortified by a contentious aggregation theory used by real business cycle theorists. The replacement of that aggregation theory with one more congenial to microeconomic observations opens possibilities for an accord about the aggregate labor supply elasticity. The new aggregation theory drops features to which empirical microeconomists objected and replaces them with life-cycle choices. Whether the new aggregation theory ultimately indicates a small or large macro labor supply elasticity will depend on how shocks and government institutions interact to put workers at interior solutions for career length.

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