Education, lifetime labor supply, and longevity improvements

Miguel Sánchez-Romero, d׳Albis, Hippolyte and Alexia Fürnkranz-Prskawetz
Authors registered in the RePEc Author Service: Hippolyte d'Albis

Journal of Economic Dynamics and Control, 2016, vol. 73, issue C, 118-141

Abstract: This paper presents an analysis of the differential role of mortality for the optimal schooling and retirement age when the accumulation of human capital follows the so-called “Ben–Porath mechanism”. We set up a life-cycle model of consumption and labor supply at the extensive margin that allows for endogenous human capital formation. This paper makes two important contributions. First, we provide the conditions under which a decrease in mortality leads to a longer education period and an earlier retirement age. Second, those conditions are decomposed into a Ben–Porath mechanism and a lifetime-human wealth effect vs. the years-to-consume effect. Finally, using US and Swedish data for cohorts born between 1890 and 2000, we show that our model can match the empirical evidence.

Keywords: Mortality decline; Early retirement; Increasing length of schooling; Ben–Porath mechanism; Years-to-consume effect; Lifetime human wealth effect (search for similar items in EconPapers)
JEL-codes: I25 J10 J24 J26 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016518891630149X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Education, lifetime labor supply, and longevity improvements (2016)
Working Paper: Education, lifetime labor supply, and longevity improvements (2016)
Working Paper: Education, lifetime labor supply, and longevity improvements (2016)
Working Paper: Education, lifetime labor supply, and longevity improvements (2015)
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:eee:dyncon:v:73:y:2016:i:c:p:118-141

DOI: 10.1016/j.jedc.2016.09.004

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Catherine Liu ().