Lifetime aggregate labor supply with endogenous workweek length

Edward Prescott, Richard Rogerson, Johanna Wallenius

Research output: Contribution to journalArticle

36 Scopus citations

Abstract

This paper studies lifetime aggregate labor supply with endogenous workweek length. Such a theory is needed to evaluate various government policies. A key feature of our model is a nonlinear mapping from hours worked to labor services. This gives rise to an endogenous workweek that can differ across occupations. The theory determines what fraction of the lifetime an individual works, not when. We find that constraints on workweek length have different consequences for total hours than for total labor services. Also, we find that policies designed to increase the length of the working life may not increase aggregate lifetime labor supply.

Original languageEnglish (US)
Pages (from-to)23-36
Number of pages14
JournalReview of Economic Dynamics
Volume12
Issue number1
DOIs
StatePublished - Jan 1 2009

Keywords

  • Lifetime aggregate labor supply
  • Workweek length

ASJC Scopus subject areas

  • Economics and Econometrics

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