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Lifetime Labor Supply and Human Capital Investments

Rodolfo Manuelli, Ananth Seshadri () and Yongseok Shin
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Rodolfo Manuelli: Washington University in St. Louis and Federal Reserve Bank of St. Louis

No 2012-011, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: We develop a model of retirement and human capital investment to study the effects of tax and retirement policies. Workers choose the supply of raw labor (career length) and also the human capital embodied in their labor. Our model explains a significant fraction of the US-Europe difference in schooling and retirement. The model predicts that reforms of the European retirement policies modeled after the US can deliver 15-35 percent gains in per-worker output in the long run. Increased human capital investment in and out of school accounts for most of the gains, with relatively small changes in career length. JEL classification: E24; J24

Keywords: Lifetime labor supply; human capital (search for similar items in EconPapers)
JEL-codes: E24 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dge, nep-hrm, nep-lab, nep-lma, nep-ltv and nep-mac
Date: 2012-01
Note: M
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Downloads: (external link) ... pplyRetirementHK.pdf First version, 1/1/2012 (application/pdf)

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Working Paper: Lifetime Labor Supply and Human Capital Investment (2012) Downloads
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