Abstract
I analyze two extensions to the standard model of life-cycle labor supply that feature operative choices along both the intensive and extensive margin. One assumes that individuals face continuous wage-hours schedules, while the other assumes that all work must be coordinated across individuals. Though similar qualitatively, the two models have very different implications for aggregate labor supply responses to tax policy. In the first model, curvature in the individual utility from leisure function plays relatively little role, but in the second model, it is of first-order importance. The second model also has important implications for what data are best able to provide evidence on the extent of curvature in the utility from leisure function.
Original language | English (US) |
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Pages (from-to) | 7-37 |
Number of pages | 31 |
Journal | Journal of Money, Credit and Banking |
Volume | 43 |
Issue number | SUPPL. 1 |
DOIs | |
State | Published - Aug 2011 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Accounting
- Finance
- Economics and Econometrics
Keywords
- E24
- Employment
- J22
- Labor supply
- Work schedules