Download

Download eBook for Free

FormatFile SizeNotes
PDF file 2.2 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback64 pages $20.00 $16.00 20% Web Discount

In this study examining the role of assets in labor supply functions, the author argues that although assets have frequently been used to measure the response of hours worked to nonwage-related income, it is incorrect to include them in a labor supply function. Using a simple life cycle model to examine the relationships between working hours and assets, he shows that both are simultaneously determined by similar economic forces, and that the correlation between them should not be accepted as evidence of a causal sequence from assets to market work. He also shows that savings are determined by a life cycle variation in the wage rates of family members and the interplay of interest rates and time preferences. Some empirical applications are attempted, using data from the Survey of Economic Opportunity.

This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.