Human Capital and Retirement
AbstractThis paper investigates the relation between human capital andretirement when the age of retirement is endogenous. This relation isexamined in a life-cycle earnings model. An employee works full timeuntil retirement. The worker accumulates human capital by training-on-the-job and by learning-by-doing. The human capital of an employeeis subject to depreciation when knowledge of technologies becomesobsolete. After a shock in technology, the worker depreciates on hishuman capital. The lower human capital results in a lower life-timeincome, but also in a lower price of an earlier retirement.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 99-056/3.
Date of creation: 05 Aug 1999
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endogenous retirement; human capital; life-cycle models;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-08-27 (All new papers)
- NEP-DGE-1999-08-27 (Dynamic General Equilibrium)
- NEP-LAB-1999-08-27 (Labour Economics)
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