Campus Units

Economics

Document Type

Article

Publication Date

3-2015

Journal or Book Title

Economics Bulletin

Volume

35

Issue

1

First Page or Article ID Number

133

Last Page

139

Abstract

Hansen and Lønstrup [Journal of Population Economics, 2012] construct a three-period, life-cycle model to study the famed Ben-Porath mechanism and attempt to reconcile it with the empirical findings in Hazan [Econometrica, 2009]: increased life expectancy has a positive effect on schooling but a negative effect on expected lifetime labor supply. This paper shows that within the framework of Hansen and Lønstrup (2012), as life expectancy increases, expected lifetime labor supply may not decline even when labor supplies at the two end stages of life do. I fully characterize the conditions under which the model in Hansen and Lønstrup (2012) can produce the empirical findings in Hazan (2009).

Comments

This article is from Economics Bulletin 35 (2015): 133.

Rights

This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Language

en

File Format

application/pdf

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