Annual Hours and Weeks in a Life-Cycle Labor Supply Model: Canadian Evidence on Male Behavior

1994 ◽  
Vol 12 (3) ◽  
pp. 460-477 ◽  
Author(s):  
Kevin T. Reilly
Keyword(s):  
Life Cycle ◽  
Labor Supply ◽  
Male Behavior ◽  
Supply Model

Health, Human Capital, and Life Cycle Labor Supply

2014 ◽  
Vol 104 (5) ◽  
pp. 127-131 ◽  
Author(s):  
Charles Hokayem ◽  
James P. Ziliak
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Labor Supply ◽  
Strong Evidence ◽  
Capital Stock ◽  
Good Health ◽  
Learning By Doing ◽  
Health Capital ◽  
Supply Model

We use new PSID data on consumption and health, along with information on annual sick time, to estimate a structural labor supply model that incorporates a health capital stock with the traditional human capital learning-by-doing model. The estimates show strong evidence of learning by doing as well as strong persistence in health. However, the estimates reveal that time and money seem to have little effect on health consistent with 'flat of the curve' medicine. We find strong evidence that consumption and leisure are direct substitutes in preferences, and consumption and leisure are each utility complements with good health.

scholarly journals An Empirical Model of Labor Supply in a Life-Cycle Setting

1981 ◽  
Vol 89 (6) ◽  
pp. 1059-1085 ◽  
Author(s):  
Thomas E. MaCurdy
Keyword(s):  
Life Cycle ◽  
Labor Supply ◽  
Empirical Model

Micro and Macro Labor Supply Elasticities: A Reassessment of Conventional Wisdom

2012 ◽  
Vol 50 (2) ◽  
pp. 464-476 ◽  
Author(s):  
Michael Keane ◽  
Richard Rogerson
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Optimal Design ◽  
Labor Supply ◽  
Capital Accumulation ◽  
Conventional Wisdom ◽  
Human Capital Accumulation ◽  
Micro Data ◽  
Large Aggregate ◽  
Economic Issues

The response of aggregate labor supply to various changes in the economic environment is central to many economic issues, especially the optimal design of tax policies. Conventional wisdom based on studies in the 1980s and 1990s has long held that the analysis of micro data leads one to conclude that aggregate labor supply elasticities are quite small. In this paper we argue that this conventional wisdom does not hold up to empirically reasonable and relevant extensions of simple life cycle models that served as the basis for these conclusions. In particular, we show that several pieces of conventional wisdom fail in the presence of human capital accumulation or labor supply decisions that allow for adjustment along both the extensive and intensive margin. We conclude that previous estimates of small labor supply elasticities based on micro data are fully consistent with large aggregate labor supply elasticities. (JEL D91, E24, J22)

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