@article{760ef96faa3f4de9a1a3c99ab3749512,
title = "Career length: Effects of curvature of earnings profiles, earnings shocks, taxes, and social security",
abstract = "The same high labor supply elasticity that characterizes a representative family model with indivisible labor and employment lotteries also emerges without lotteries when self-insuring individuals choose interior solutions for their career lengths. Off corners, the more elastic is an earnings profile to accumulated working time, the longer is a worker's career. Negative (positive) unanticipated earnings shocks reduce (increase) the career length of a worker holding positive assets, while the effects are the opposite for a worker with negative assets. By inducing a worker to retire at an official retirement age, government provided social security can attenuate responses of career lengths to earnings profile slopes, earnings shocks, and taxes.",
keywords = "Career length, Earnings profile, Earnings shocks, Indivisible labor, Labor supply elasticity, Social security, Taxes",
author = "Lars Ljungqvist and Sargent, {Thomas J.}",
note = "Funding Information: We are grateful for helpful comments from Richard Blundell, Eric French, Patrick Kehoe, Richard Rogerson, Gianluca Violante, and participants at the 2009 WCU Conference on Recent Developments in Macroeconomics in Seoul, the 2010 Minnesota Workshop in Macroeconomic Theory, as well as our discussants Christopher Taber at the 2010 Conference on Micro and Macro Labor Models in Santa Barbara, Mark Bils at the 2010 Meeting of the Canadian Macroeconomics Study Group, and David Card at the 2011 Meeting of the American Economic Association. Ljungqvistʼs research was supported by a grant from the Jan Wallander and Tom Hedelius Foundation . Sargentʼs research was supported by a grant to the National Bureau of Economic Research from the National Science Foundation . Copyright: Copyright 2014 Elsevier B.V., All rights reserved.",
year = "2014",
month = jan,
doi = "10.1016/j.red.2013.04.001",
language = "English (US)",
volume = "17",
pages = "1--20",
journal = "Review of Economic Dynamics",
issn = "1094-2025",
publisher = "Academic Press Inc.",
number = "1",
}