Work and Play Pave the Way: The Importance of Part Time Work in a Lifecycle Model
AbstractUS males labour force behaviour shows lifecycle effects. We develop a lifecycle model of individual labour supply, with a single financial asset and non labour income. With widely used preferences, we derive the analytical form of the value function and optimal labour participation for any period, t. Consumption and savings switches its form as participation changes. A spell of part time work has strong implications for earlier decisions on participation, consumption, savings and the marginal value of leisure and wealth. We apply our framework to explain the increasing prevalence of non standard retirement noted in the literature.
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Bibliographic InfoPaper provided by Department of Economics, University of York in its series Discussion Papers with number 13/01.
Date of creation: Jan 2013
Date of revision:
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Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
Phone: (0)1904 323776
Fax: (0)1904 323759
Web page: http://www.york.ac.uk/economics/
More information through EDIRC
Lifecycle; Labour supply decision; Retirement; Unretirement;
Find related papers by JEL classification:
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-AGE-2013-01-26 (Economics of Ageing)
- NEP-ALL-2013-01-26 (All new papers)
- NEP-DEM-2013-01-26 (Demographic Economics)
- NEP-LAB-2013-01-26 (Labour Economics)
- NEP-LMA-2013-01-26 (Labor Markets - Supply, Demand, & Wages)
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.:
- Nicole Maestas, 2010. "Expectations and Realizations of Work after Retirement," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
- Merton, Robert C., 1971.
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Journal of Economic Theory,
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- R. C. Merton, 1970. "Optimum Consumption and Portfolio Rules in a Continuous-time Model," Working papers 58, Massachusetts Institute of Technology (MIT), Department of Economics.
- Ricky Kanabar, 2012.
"Unretirement in England: An empirical perspective,"
12/31, Department of Economics, University of York.
- Olivier Donni & Nicolas Moreau, 2005.
"Collective Labor Supply: a Single-Equation Model and Some Evidence from French Data,"
Cahiers de recherche
- Olivier Donni & Nicolas Moreau, 2007. "Collective Labor Supply: A Single-Equation Model and Some Evidence from French Data," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(6), pages 1261-84, December.
- Luisa Fuster & Gueorgui Kambourov & Andres Erosa, 2008. "The Heterogeneity and Dynamics of Individual Labor Supply over the Life-Cycle: Facts and Theory," 2008 Meeting Papers 529, Society for Economic Dynamics.
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