Human Capital and Retirement

Peter Alders

No 99-056/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper investigates the relation between human capital andretirement when the age of retirement is endogenous. This relation isexamined in a life-cycle earnings model. An employee works full timeuntil retirement. The worker accumulates human capital by training-on-the-job and by learning-by-doing. The human capital of an employeeis subject to depreciation when knowledge of technologies becomesobsolete. After a shock in technology, the worker depreciates on hishuman capital. The lower human capital results in a lower life-timeincome, but also in a lower price of an earlier retirement.

Keywords: endogenous retirement; human capital; life-cycle models (search for similar items in EconPapers)
JEL-codes: J24 J26 O33 (search for similar items in EconPapers)
Date: 1999-08-05
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:19990056

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