Towards a Micro-Founded Theory of Aggregate Labour Supply

• 成果类型: Article
• 署名作者: Erosa, Andres; Fuster, Luisa; Kambourov, Gueorgui
• 署名单位: Universidad Carlos III de Madrid; University of Toronto
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdw010
• 发表日期: 2016
• 页码: 1001-1039
• 关键词: life-cycle model; borrowing constraints; indivisible labor; business-cycle; self-insurance; elasticities; consumption; INEQUALITY; retirement; taxes

摘要

We build a heterogeneous agents life cycle model that captures a large number of salient features of individual male labour supply over the life cycle, by education, both along the intensive and extensive margins. The model provides an aggregation theory of individual labour supply, firmly grounded on individual-level micro-evidence, and is used to study the aggregate labour supply responses to changes in the economic environment. We find that the aggregate labour supply elasticity to a transitory wage shock is 1.75, with the extensive margin accounting for 62% of the response. Furthermore, we find that the aggregate labour supply elasticity to a permanent-compensated wage change is 0.44.