EconPapers    
Economics at your fingertips  
 

Labor Supply and Saving under Uncertainty

Martin Flodén

No 597, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper examines how variations in labor supply can be used to self-insure against wage uncertainty, and the impact of such self-insurance on precautionary saving. The analytical framework is a two-period model with saving and labor-supply decisions where preferences are consistent with balanced growth. The main findings are that (i) labor-supply flexibility raises precautionary saving when future wages are uncertain, and (ii) uncertainty about future wages raises current labor supply and reduces future labor supply.

Keywords: precautionary saving; prudence; labor supply (search for similar items in EconPapers)
JEL-codes: D81 E21 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2005-04-22
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Economic Journal, 2006, pages 721-737.

Downloads: (external link)
http://swopec.hhs.se/hastef/papers/hastef0597.pdf (application/pdf)

Related works:
Journal Article: Labour Supply and Saving Under Uncertainty (2006)
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:hhs:hastef:0597

Access Statistics for this paper

More papers in SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Helena Lundin ().

 
Page updated 2024-05-25
Handle: RePEc:hhs:hastef:0597