Longevity and lifetime labor supply: Evidence and implications

Moshe Hazan*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

92 Scopus citations

Abstract

Conventional wisdom suggests that increased life expectancy had a key role in causing a rise in investment in human capital. I incorporate the retirement decision into a version of Ben-Porath's (1967) model and find that a necessary condition for this causal relationship to hold is that increased life expectancy will also increase lifetime labor supply. I then show that this condition does not hold for American men born between 1840 and 1970 and for the American population born between 1890 and 1970. The data suggest similar patterns in Western Europe. I end by discussing the implications of my findings for the debate on the fundamental causes of long-run growth.

Original languageEnglish
Pages (from-to)1829-1863
Number of pages35
JournalEconometrica
Volume77
Issue number6
DOIs
StatePublished - Nov 2009
Externally publishedYes

Keywords

  • Economic growth
  • Hours worked
  • Human capital
  • Longevity

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