Human Capital and Labor Supply

Download or read book Human Capital and Labor Supply written by Alan S. Blinder and published by . This book was released on 1974 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is by now widely recognized that investment decisions play a major role in the determination of individual age-earnings profiles. The purpose of this paper is to present a simple life-cycle model of investment in human capital in which leisure choices are explicitly incorporated. In so doing, we integrate two previously disparate branches of life-cycle theory: models of labor supply with exogenous wages, and models of human capital formation with exogenous leisure. Of course, to accomplish this, we must posit utility maximization as the individual's goal rather than income maximization.