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Fixed Costs, Retirement and the Elasticity of Labor Supply

Author

Listed:
  • Johanna Wallenius

    (Stockholm School of Economics)

  • Richard Rogerson

    (Arizona State University)

Abstract

We analyze the forces that can generate retirement in different versions of standard life cycle models of labor supply. While nonconvexities in production can generate retirement, we show that the size of nonconvexities needed increases sharply as the intertemporal elasticity of substitution for labor decreases.

Suggested Citation

  • Johanna Wallenius & Richard Rogerson, 2011. "Fixed Costs, Retirement and the Elasticity of Labor Supply," 2011 Meeting Papers 250, Society for Economic Dynamics.
    • Handle: RePEc:red:sed011:250
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    References listed on IDEAS

    as
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