Human Capital and Retirement

Peter Alders

No 99-056/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper investigates the relation between human capital and retirement when the age of retirement is endogenous. This relation is examined in a life-cycle earnings model. An employee works full time until retirement. The worker accumulates human capital by training- on-the-job and by learning-by-doing. The human capital of an employee is subject to depreciation when knowledge of technologies becomes obsolete. After a shock in technology, the worker depreciates on his human capital. The lower human capital results in a lower life-time income, but also in a lower price of an earlier retirement.

Keywords: endogenous retirement; human capital; life-cycle models (search for similar items in EconPapers)
JEL-codes: J24 J26 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-lab
Date: 1999-08-05
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Persistent link: http://EconPapers.repec.org/RePEc:dgr:uvatin:19990056

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