Business Cycle Fluctuations and the Life Cycle: How Important is On-The-Job Skill Accumulation? / Gary D. Hansen, Selo Imrohoroglu.

Format:

Book

Author/Creator:

Hansen, Gary D.

Contributor:

National Bureau of Economic Research.

Imrohoroglu, Selo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w13603.

NBER working paper series no. w13603

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Business Cycle Fluctuations and the Life Cycle

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

We study the effects of on-the-job skill accumulation on average hours worked by age and the volatility of hours over the life cycle in a calibrated general equilibrium model. Two forms of skill accumulation are considered: learning by doing and on-the-job training. In our economy with learning by doing, individuals supply more labor early in the life cycle and less as they approach retirement than they do in an economy without this feature. The impact of this feature on the volatility of hours over the life cycle depends on the value of the intertemporal elasticity of labor supply. When individuals accumulate skills by on-the-job training, there are only weak effects on both the steady-state labor supply and its volatility over the life cycle.

Notes:

Print version record

November 2007.