TAILIEUCHUNG - Lecture Labour market economics: Chapter 4 - Dwayne Benjamin, Morley Gunderson, Craig Riddell

Chapter 4 - Labour supply over the life-cycle. The topics discussed in this chapter are: Labour supply patterns, lifetime planning and wage elasticity, labour supply over the lifetime, fertility and women’s labour supply decisions, retirement. | Labour Supply Over the Life-cycle Chapter Four Created by: Erica Morrill, Fanshawe College © 2002 McGraw-Hill Ryerson Ltd. Chapter Focus Labour supply patterns Lifetime planning and wage elasticity Labour supply over the lifetime Fertility and women’s labour supply decisions Retirement Chapter 4- © 2002 McGraw-Hill Ryerson Ltd. Figure Labour Force Participation Profiles Men participation increases in twenties peak at 30-50 declining at retirement age participation of older men has declined since 1971 Chapter 4- © 2002 McGraw-Hill Ryerson Ltd. Figure Labour Force Participation Rates Women data more complicated to interpret society/economic factors influence women’s participation rates generally shaped like men’s participation slower entry into labour market has been rising since 1971 Chapter 4- © 2002 McGraw-Hill Ryerson Ltd. Dynamic Life Cycle Models A model based on the assumption that individuals plan out their lifetime supply of labour given their expected

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