Human Capital and Retirement
1999-08-05
Research Paper
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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.
Keywords
Classifications using
Journal of Economic Literature (JEL) Classification System
- O33 : Technological Change: Choices and Consequences; Diffusion Processes
- J24 : Human Capital; Skills; Occupational Choice; Labor Productivity
- J26 : Retirement; Retirement Policies
Automatically Extracted Terms
- retirement
- capital
- effect
- level
- employee
- shock
- technology
- period
- income
- consumption
- result
- decline
- leisure
- moment
- worker
- model
- investment
- increase
- shadow price
- labor
