Retirement, home production and labor supply elasticities

Richard Rogerson and Johanna Wallenius

Journal of Monetary Economics, 2016, vol. 78, issue C, 23-34

Abstract: A standard life cycle model with home production implies a tight relationship between key preference parameters and the changes in time allocated to home production and leisure at retirement. We derive this relationship and use data from the ATUS to explore its quantitative implications. The key finding is that the intertemporal elasticity of substitution for leisure and the elasticity of substitution between time and goods in home production are approximately equal, in contrast to what is commonly assumed.

Keywords: Labor supply; Home production; Retirement (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (20)

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Working Paper: Retirement, Home Production and Labor Supply Elasticities (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:78:y:2016:i:c:p:23-34

DOI: 10.1016/j.jmoneco.2015.12.007

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