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Human Capital and Retirement

Author

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  • Peter Alders

    (Erasmus University Rotterdam)

Abstract

This 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.

Suggested Citation

  • Peter Alders, 1999. "Human Capital and Retirement," Tinbergen Institute Discussion Papers 99-056/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19990056
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    References listed on IDEAS

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    More about this item

    Keywords

    endogenous retirement; human capital; life-cycle models;
    All these keywords.

    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, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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