Life-Cycle Labor Supply with Human Capital Accumulation
A dynamic model of labor supply under uncertainty with endogenous human capital accumulation is developed and estimated using 1968-81 Panel Study of Income Dynamics male panel data. Given a learning-by-doing technology for human capital investment and a translog utility function, structural parameters for preferences and technology are estimated from the orthogonality conditions implied by the Euler equations assuming rational expectations. The parameter estimates conform to economic theory. Simulations of the model suggest that the intertemporal labor supply elasticity with endogenous wages will rise over the lifecycle, producing different policy implications than typical models with exogenous wages and constant intertemporal elasticities. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 30 (1989)
Issue (Month): 2 (May)
|Contact details of provider:|| Postal: |
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |
When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:30:y:1989:i:2:p:431-56. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or ()
If references are entirely missing, you can add them using this form.