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The Heterogeneity and Dynamics of Individual Labor Supply over the Life-Cycle: Facts and Theory

  • Luisa Fuster

    (University of Toronto)

  • Gueorgui Kambourov

    (University of Toronto)

  • Andres Erosa

    (University of Toronto)

This paper has three contributions. First, we document various facts about the labor supply decisions of men and women in the US over their life-cycle. For cohorts of male and female individuals in the PSID, we study the life-cycle profile of average hours worked, the variance of log hours, and the fraction of individuals with positive hours worked during the year. In addition, we analyze the persistence in labor force participation and hours worked over the life-cycle. Second, we build a model which is consistent with the facts, and explore the relationship between individual and aggregate labor supply. Third, we use the model to study the impact of various policies, such as a tax reform, on individual and aggregate labor supply.

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Paper provided by Society for Economic Dynamics in its series 2008 Meeting Papers with number 529.

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Date of creation: 2008
Date of revision:
Handle: RePEc:red:sed008:529
Contact details of provider: Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA
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