Dynamic Labor Supply

Topics Discussed in Class

• Heckman and MaCurdy's Constant Marginal Utility Model.

• Retirement.

• Examples of Structural Dynamic Models.

Notes

Homework 2

Homework 2a

Readings Discussed in Class (in order of discussion)

• Heckman, James, and Thomas MaCurdy (1980). "A Dynamic Model of Female Labor Supply." Review of Economic Studies. 47(1): 47-74.

• Berkovec, James and Steven Stern (1991). "Job Exit Behavior of Older Men." Econometrica. 59(1): 189-210.

• Wolpin, Kenneth (1992). "The Determinants of Black-White Differences in Early Employment Careers: Search, Layoffs, Quits, and Endogenous Wage Growth." Journal of Political Economy. 100(3): 535-560.

Extra readings

• • Gustman, Alan and Thomas Steinmeier (1986). "A Structural Retirement Model." Econometrica. 54(3): 555-584.

  • Heckman, James, and Robert Willis (1977). "A Beta Logistic Model for the Analysis of Sequential Labor Force Participation by Married Women." Journal of Political Economy. 85(1): 27-58.

  • MaCurdy, Thomas (1981). "An Empirical Model of Labor Supply in a Life Cycle Setting." Journal of Political Economy. 89(6): 1059-1085.

  • Miller, Robert (1984). "Job Matching and Occupational Choice." Journal of Political Economy. 92(6): 1086-1120.

  • Stock, James, and David Wise (1990). "Pensions, the Option Value of Work, and Retirement." Econometrica. 58(5): 1151-1180.