series: TI 99-056/3
Human Capital and Retirement
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This paper investigates the relation between human capital and retirement when the age of retirement is endogenous. This relation is examined in a life-cycle earnings model. An employee works full time until retirement. The worker accumulates human capital by training- on-the-job and by learning-by-doing. The human capital of an employee is subject to depreciation when knowledge of technologies becomes obsolete. After a shock in technology, the worker depreciates on his human capital. The lower human capital results in a lower life-time income, but also in a lower price of an earlier retirement.
- O33 : Technological Change: Choices and Consequences; Diffusion Processes
- J24 : Human Capital; Skills; Occupational Choice; Labor Productivity
- J26 : Retirement; Retirement Policies
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