Lifetime Aggregate Labor Supply with Endogenous Workweek Length

Posted: 22 Jul 2008

See all articles by Edward C. Prescott

Edward C. Prescott

Arizona State University (ASU) - Economics Department; National Bureau of Economic Research (NBER)

Richard Rogerson

Arizona State University (ASU) - Economics Department; National Bureau of Economic Research (NBER); Princeton University - Woodrow Wilson School of Public and International Affairs

Johanna Wallenius

Arizona State University (ASU) - Economics Department

Date Written: November 2007

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 total labor services. Also, we find that policies designed to increase the length of the working life may not increase aggregate lifetime labor supply.

Keywords: Lifetime aggregate labor supply, Workweek length

JEL Classification: E2, J2

Suggested Citation

Prescott, Edward C. and Rogerson, Richard and Wallenius, Johanna, Lifetime Aggregate Labor Supply with Endogenous Workweek Length (November 2007). Available at SSRN: https://ssrn.com/abstract=1162917

Edward C. Prescott (Contact Author)

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Richard Rogerson

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States
480-727-6671 (Phone)
602-965-0748 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Princeton University - Woodrow Wilson School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States

Johanna Wallenius

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

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