A rich life cycle model of labor supply in Finland

Antti J. Tanskanen

Papers from arXiv.org

Abstract: A life cycle model of consumption and labor supply describes employment decisions of a collection of individuals during their lifetime. We develop a life cycle model describing a heterogeneous population operating in Finland under a wide variety of employment states and life situations. A rich life cycle model requires a large state space representing the possible states of simulated agents. The results demonstrate that the model reproduces a number of statistics of the Finnish employment market such as the age structures of employment rate and unemployment rate, distributions of observed effective marginal tax rates and participating tax rates, and proportion of part time work. As an application of analysis of a reform, we analyze how the program of Orpo government influences employment and public finances in Finland.

Date: 2025-11
References: Add references at CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2511.00660 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2511.00660

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().