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Retirement, home production and labor supply elasticities

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  • Rogerson, Richard
  • Wallenius, Johanna

Abstract

A standard life cycle model with home production implies a tight relationship between key preference parameters and the changes in time allocated to home production and leisure at retirement. We derive this relationship and use data from the ATUS to explore its quantitative implications. The key finding is that the intertemporal elasticity of substitution for leisure and the elasticity of substitution between time and goods in home production are approximately equal, in contrast to what is commonly assumed.

Suggested Citation

  • Rogerson, Richard & Wallenius, Johanna, 2016. "Retirement, home production and labor supply elasticities," Journal of Monetary Economics, Elsevier, vol. 78(C), pages 23-34.
  • Handle: RePEc:eee:moneco:v:78:y:2016:i:c:p:23-34
    DOI: 10.1016/j.jmoneco.2015.12.007
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    1. John Laitner & Dan Silverman, 2005. "Estimating Life-Cycle Parameters from Consumption Behavior at Retirement," NBER Working Papers 11163, National Bureau of Economic Research, Inc.
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    Cited by:

    1. L. Rachel Ngai & Barbara Petrongolo, 2017. "Gender Gaps and the Rise of the Service Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 1-44, October.
    2. Roberto Bonilla & Alberto Trejos, 2015. "Marriage, Employment Participation and Home Production in Search Equilibrium," Monetaria, Centro de Estudios Monetarios Latinoamericanos, vol. 0(1), pages 1-23, january-j.
    3. repec:eee:eecrev:v:101:y:2018:i:c:p:512-527 is not listed on IDEAS

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    Keywords

    Labor supply; Home production; Retirement;

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