Education, lifetime labor supply, and longevity improvements

Alexia Fürnkranz-Prskawetz, Miguel Sánchez-Romero and Hippolyte d'Albis

VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy from Verein für Socialpolitik / German Economic Association

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 based on Card (2001). 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 lifetimehuman wealth effect vs. the years-to-consume effect. Finally, using Swedish data for cohorts born between 1865 and 2000, we show that our model can match the empirical evidence.

JEL-codes: J10 J24 J26 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-age, nep-dge, nep-hea and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: 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 (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc15:112937

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