Estimation of a Life-Cycle Model with Human Capital, Labor Supply, and Retirement
Fan, Xiaodong
Estimation of a Life-Cycle Model with Human Capital, Labor Supply, and Retirement - Journal of Political Economy 2024 - 48-95
We estimate a life-cycle model of consumption, human capital investment, and labor supply. The interaction between human capital and labor supply toward the end of the life cycle is most novel. The estimates replicate the main features of the data, in particular the large increase in wages and small increase in labor supply at the beginning of the life cycle and the small decrease in wages but large decrease in labor supply toward the end. We show that incorporating human capital is critical when analyzing changes to Social Security.
0022-3808
Labor Supply
Life-Cycle Model
Social Security
Human Capital
Estimation of a Life-Cycle Model with Human Capital, Labor Supply, and Retirement - Journal of Political Economy 2024 - 48-95
We estimate a life-cycle model of consumption, human capital investment, and labor supply. The interaction between human capital and labor supply toward the end of the life cycle is most novel. The estimates replicate the main features of the data, in particular the large increase in wages and small increase in labor supply at the beginning of the life cycle and the small decrease in wages but large decrease in labor supply toward the end. We show that incorporating human capital is critical when analyzing changes to Social Security.
0022-3808
Labor Supply
Life-Cycle Model
Social Security
Human Capital