Search Results
Title: Intertemporal Labor Supply and Human Capital Accumulation
Resulting in 1 citation.
1. |
Imai, Susumu |
Intertemporal Labor Supply and Human Capital Accumulation Presented: New York, NY, Econometric Society Winter Meeting, 1999 Cohort(s): NLSY79 Publisher: Econometric Society Keyword(s): Human Capital; Labor Economics; Labor Supply; Life Cycle Research; Modeling Permission to reprint the abstract has not been received from the publisher. Also: Presented: New Haven, CT, Yale University, Cowles Foundation Conference on Strategy and Decision Making, 2000. There has been considerable interest in both labor economics and macro economics in estimating the intertemporal elasticity of substitution for labor supply. In this paper, I solve and estimate a dynamic model that allows agents to optimally choose their labor hours and consumption over a continuum of positive real numbers, and that allows for both human capital accumulation and savings. Estimation results and simulation exercises indicate that the intertemporal elasticity of substitution is much higher than those estimated by MaCurdy (1981) or Altonji (1985), and that their estimates are biased downwards because of the omission of the human capital accumulation effect. The human capital accumulation effect renders the life-cycle path of the shadow wage relatively flat, even though wages increase significantly with age. Hence, a rather flat lifecycle labor supply path can be reconciled with a high intertemporal elasiticity of substitution. |
|
Bibliography Citation
Imai, Susumu. "Intertemporal Labor Supply and Human Capital Accumulation." Presented: New York, NY, Econometric Society Winter Meeting, 1999. |