Wages, Hours and Human Capital Over the Life Cycle
44 Pages Posted: 23 Jun 2000
Date Written: March 2000
Abstract
We investigate wage-hours contracts within a four-period rent sharing model that incorporates asymmetric information. Distinctions are made among (a) an investment period, (b) a period in which the parties may separate (quits or layoffs) or continue rent accumulation and sharing, (c) a post investment period, and (d) retirement. We establish that increases in both wage rates and hours of work in the post-investment period serve to minimise sub-optimal separations and, moreover, that both wage and hours schedules are concave. The model is tested with the British Household Panel Survey (1991-1997) and with the British Labour Force Survey (1993/4).
Keywords: Lifetime wage-hours contracts, asymmetric information, estimated wage- and hour-tenure profiles
JEL Classification: J41, J33
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Social Security and Retirement
By Courtney Coile and Jonathan Gruber
-
Social Security and Retirement
By Courtney Coile and Jonathan Gruber
-
Social Security and Retirement in the U.S
By Peter A. Diamond and Jonathan Gruber
-
Social Security Programs and Retirement Around the World: Micro Estimation
By Jonathan Gruber and David A. Wise
-
Pensions, the Option Value of Work, and Retirement
By James H. Stock and David A. Wise
-
By Jonathan Gruber and David A. Wise
-
Social Security Programs and Retirement Around the World: Introduction and Summary of Papers by..
By Jonathan Gruber and David A. Wise
-
The Social Security Early Entitlement Age in a Structural Model of Retirement and Wealth
-
Delays in Claiming Social Security Benefits
By Courtney Coile, Peter A. Diamond, ...