Showing 1 - 10 of 17
Economists’ standard model assumes that improvements in total factor productivity (TFP) raise the marginal product of labor for all workers evenly. This paper uses an earnings dynamics regression model to study whether, in practice, older workers benefit less from TFP growth than younger...
Persistent link: https://www.econbiz.de/10010732255
This paper analyzes the effect of a potential reform to the Social Security system on individuals’ retirement and consumption choices. We first estimate the coefficients for a life-cycle model. We assume intratemporally nonseparable preference orderings and endogenous retirement. Our framework...
Persistent link: https://www.econbiz.de/10005626958
Data suggest the distribution of wealth among households in the United States and the United Kingdom has become more equal over the last century — though the pattern may have reversed recently. This paper shows that a model in which all households save for life–cycle reasons and some for...
Persistent link: https://www.econbiz.de/10005626974
Economists have long thought of technological progress as a primary determinant of rising living standards over time. One might think of technological progress as increasing the “effectiveness” of labor, thereby raising the amount of output that each unit of labor can produce. The purpose of...
Persistent link: https://www.econbiz.de/10005626985
Economists’ principal tool for studying household behavioral responses to changes in tax and other government policies, and the magnitude and determinants of private saving, is the life—cycle model. The purpose of this paper is to attempt to incorporate into that model one of the most...
Persistent link: https://www.econbiz.de/10005626987
The President’s Commission to Strengthen Social Security suggests three plans for reforming Social Security. These plans divert various amounts of the payroll tax to a personal account if the worker chooses to participate in the account. In return, Social Security benefits are offset using...
Persistent link: https://www.econbiz.de/10005796555
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Persistent link: https://www.econbiz.de/10005796559
This paper studies the quantitative importance of precautionary wealth accumulation relative to life—cycle saving for retirement. Section 1 examines panel data on earnings from the PSID. Using a bivariate normal model of random effects, we find that second— period—of—life earnings are...
Persistent link: https://www.econbiz.de/10005838393
Using pseudo-panel data, we estimate the structural parameters of a life—cycle consumption model with discrete labor supply choice. A focus of our analysis is the abrupt drop in consumption upon retirement for a typical household. The literature sometimes refers to the drop, which in the U.S....
Persistent link: https://www.econbiz.de/10005838395