We decompose permanent earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks …, modeled as innovations to the marginal disutility of work, and labor supply reactions to wage shocks we formulate a life …-cycle model of consumption and labor supply. Both permanent wage and hours shocks are important to explain earnings risk, but wage …

marginal rate of substitution of earnings for hours to the wage rate is on the order of 0.5-0.6 for prime-age workers. The … among low-wage workers. On average, observed hours tend to be less than preferred levels, and workers would require a 12 …% higher wage with their current employer to be as well off as they would be after moving to an employer offering ideal hours …

-time income by 11%, a wage shock by 13%. …We decompose earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks, modeled … as innovations to the marginal disutility of work, and labor supply reactions to wage shocks we formulate a life …

We decompose permanent earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks …, modeled as innovations to the marginal disutility of work, and labor supply reactions to wage shocks we formulate a life …-cycle model of consumption and labor supply. Both permanent wage and hours shocks are important to explain earnings risk, but wage …

our model with the Panel Study of Income Dynamics (PSID) shows that both permanent wage and hours shocks play an important …We decompose permanent earnings risk into contributions from hours and wage shocks. In order to distinguish between … hours shocks and labor supply reactions to wage shocks we use a life-cycle model of consumption and labor supply. Estimating …

We decompose permanent earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks …, modeled as innovations to the marginal disutility of work, and labor supply reactions to wage shocks we formulate a life …-cycle model of consumption and labor supply. Both permanent wage and hours shocks are important to explain earnings risk, but wage …

to maintain health than currently observed. As a consequence, observed post-retirement income is too low, and explains a …Lifetime financial-, work- and health-related decisions made by agents are intertwined with one another. Understanding …/savings, leisure/work and health expenditures), statuses (health, financial and pension wealth) and welfare, allowing for (partially …

incorporates mental and physical health. Correlated mental and physical health production functions are simultaneously estimated …, including the endogenous decisions to seek psychotherapy and smoke cigarettes as health accumulation factors. The model is … indicate that mental health has a stronger impact on labor supply than physical health. At the same time, estimates show that …