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Lifetime Aggregate Labor Supply with Endogenous Workweek Length

Author

Listed:
  • Edward C. Prescott

    (Arizona State University)

  • Richard Rogerson

    (Arizona State University)

  • Johanna Wallenius

    (Arizona State University)

Abstract
This paper studies lifetime aggregate labor supply with endogenous workweek length. Such a theory is needed to evaluate various government policies. A key feature of our model is a nonlinear mapping from hours worked to labor services. This gives rise to an endogenous workweek that can differ across occupations. The theory determines what fraction of the lifetime an individual works, not when. We find that constraints on workweek length have different consequences for total hours than for total labor services. Also, we find that policies designed to increase the length of the working life may not increase aggregate lifetime labor supply. (Copyright: Elsevier)

Suggested Citation

  • Edward C. Prescott & Richard Rogerson & Johanna Wallenius, 2009. "Lifetime Aggregate Labor Supply with Endogenous Workweek Length," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 23-36, January.
    • Handle: RePEc:red:issued:07-175
    DOI: 10.1016/j.red.2008.07.005
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    References listed on IDEAS

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    More about this item

    Keywords

    Lifetime aggregate labor supply; Workweek length;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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    1. Recursive Macroeconomic Theory

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