Wages, hours and human capital over the life cycle

Robert A. Hart, Yue Ma

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

We investigate wage-hours contracts within a four-period rent sharing model that incorporates asymmetric information. Distinctions are made among (a) an investment period, (b) a period in which the parties may separate (quits or layoffs) or continue rent accumulation and sharing, (c) a post investment period and, (d) retirement. We establish that increases in both wage rates and hours of work in the post-investment period serve to minimise sub-optimal separations and, moreover that both wage and hours schedules are concave. Testing is based on 13 waves of British Household Panel Survey from 1991 to 2003.
Original languageEnglish
Pages (from-to)446-464
JournalJahrbucher fur Nationalokonomie und Statistik
Volume228
Issue number5-6
DOIs
Publication statusPublished - Dec 2008
Externally publishedYes

Bibliographical note

This has also been published in: Hart, R. A., & Ma, Y. (2008). Wages, hours and human capital over the life cycle. In Labormetrics (pp. 446-464). De Gruyter.

Research Keywords

  • Asymmetric iformation
  • Four period model
  • Wage-hours contracts

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