Template-type: ReDIF-Paper 1.0
Author-Name: Michael P. Keane
Author-Workplace-Name: University of Oxford and University of New South Wales
Author-Email: michael.keane@economics.ox.ac.uk
Author-Name: Nada Wasi
Author-Workplace-Name: University of Michigan, Survey Research Center
Title: Labour Supply: the Roles of Human Capital and the Extensive Margin
Abstract: In this paper we specify and estimate a life-cycle labour supply model that expands on
earlier work by simultaneously including human capital accumulation, saving and bequests, an
active extensive margin, a realistic specification of the Social Security system, an accounting for
private pensions and health expenditures, and a realistic specification of the progressive tax
structure. By accounting for all these features, we develop new insights into how taxes affect
life-cycle labour supply. For instance, we find that labour supply elasticities vary in important
ways with age, education and the tax structure itself. We also show how human capital affects
elasticities on the intensive vs. extensive margins.
X-Classification-JEL: 
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Length: 48 pages
Creation-Date: 2016-06-21
Number: 2016-W05
File-URL: https://www.nuffield.ox.ac.uk/economics/papers/2016/Keane_Wasi_Main_Text_Revised_2.pdf
File-Format: application/pdf
Handle: RePEc:nuf:econwp:1605