A life cycle model of labor supply

• Main Author: Katsaitis, Odysseus
• Language: English
• Published: University of British Columbia 2010
• Subjects: Labor supply > Mathematical models; Human capital > Mathematical models
• Online Access: http://hdl.handle.net/2429/24307

This thesis focusses on three areas in the theory of intertemporal utility maximization. First, I integrate the theory of labor supply and human capital accumulation. I formulate a model of intertemporal utility maximization in which time is allocated between leisure, schooling and work. It is assumed that the wage rate is a function of years of schooling and experience which, in turn, is a function of the total number of hours that the individual has worked so far. Second, I develop a new technique which allows us to estimate functional relationships derived from optimal control problems for which no analytic solution exists. Third, I estimate the proposed model for two different data sets. Flexible functional forms are employed for estimation purposes and every effort is made so that the empirical model approximates as closely as possible the theoretical one. === Arts, Faculty of === Vancouver School of Economics === Graduate