Thursday 22 November 2012, 1.15PM to 2.15pm
Speaker(s): Ricky Kanabar (University of York)
We develop a lifecycle model of individual labour supply, with a single asset and non labour income. Using backward induction we derive the analytical form of the value function for any period, t:We show the conditions under which a wide range of possible labour force transitions is optimal, and show the effect on the profile of wages, leisure, non labour income and saving. We highlight the role of a period of interior labour supply, in particular with respect to the participation decision and marginal value of leisure and wealth. We present stylised applications of our model to major life events including birth of a child, reaching State Pension Age (SPA) and also unretirement.
Location: Economics Staff Room (EC/202)
Admission: For Staff and Postgraduate students