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Labour Supply and Saving Under Uncertainty Author info | Abstract | Publisher info | Download info | Related research | Statistics Martin Flodén
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This article examines how variations in labour supply can be used to self-insure against wage uncertainty and the impact of such self-insurance on precautionary saving. The analytical framework is a two-period model with saving and labour-supply decisions, where preferences are consistent with balanced growth. The main findings are that (i) labour-supply flexibility raises precautionary saving when future wages are uncertain, and (ii) uncertainty about future wages raises current labour supply and reduces future labour supply. Copyright 2006 The Author. Journal compilation Royal Economic Society 2006.
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Article provided by Royal Economic Society in its journal The Economic Journal .
Volume (Year): 116 (2006)
Issue (Month): 513 (07)
Pages: 721-737
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Handle: RePEc:ecj:econjl:v:116:y:2006:i:513:p:721-737Contact details of provider: Web page: http://www.res.org.uk/ More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Simon C. Parker & Yacine Belghitar & Tim Barmby, 2005.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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