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Demographic change and transformations of the active life cycle: what relations?

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Author Info

  • D. BLANCHET

    (Insee)

  • F. TOUTLEMONDE

    (Insee)

Abstract

Historical changes in the typical life-cycle do not conform to a simple model of equal-sharing in which additional years of life are equally distributed between time devoted to training, work and leisure. We have instead observed a quasi-general decline in the share of our life-cycles that is devoted to labour. The major reason for such a deviation is the fact that this life-cycle evolves in response to other factors, such as productivity, preferences and conditions for the accumulation and depreciation of human capital. We investigate the articulation of these different factors in a continuous-time model of life-cycle optimisation that allows a realistic treatment of demographic structure. The main motives for the contraction of working lives are global productivity and the importance of human capital depreciation. We show that the equal-sharing scenario requires a parallel evolution of productivity and consumption norms, and a slowing-down of human capital depreciation that is consistent with the change in life expectancy.

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File URL: http://www.insee.fr/fr/publications-et-services/docs_doc_travail/G2008-05.pdf
File Function: Document de travail de la DESE numéro G2008-05
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Bibliographic Info

Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2008-05.

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Date of creation: 2008
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Handle: RePEc:crs:wpdeee:g2008-05

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Keywords: Ageing; life-cycle; training; retirement age;

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