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).
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
Recommended Citation
Liu, Pan, "Life expectancy, schooling and lifetime labor supply: the Ben-Porath mechanism revisited" (2015). Economics Publications. 57.
https://lib.dr.iastate.edu/econ_las_pubs/57
Comments
This article is from Economics Bulletin 35 (2015): 133.