TY  - JOUR
AU  - Hansen,Gary D.
AU  - Imrohoroglu,Selo
TI  - Business Cycle Fluctuations and the Life Cycle: How Important is On-The-Job Skill Accumulation?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13603
PY  - 2007
Y2  - November 2007
UR  - http://www.nber.org/papers/w13603
L1  - http://www.nber.org/papers/w13603.pdf
N1  - Author contact info:
Gary Hansen
UCLA
Department of Economics
8283 Bunche Hall
Box 951477
Los Angeles, CA 90095
Tel: 310/825-3847
Fax: 310/825-9528
E-Mail: ghansen@econ.ucla.edu

Selo Imrohoroglu
Department of Finance and Business Economics
Marshall School of Business
University of Southern California
Los Angeles, CA   90089
Tel: 213-740-6546
E-Mail: selo@marshall.usc.edu
AB  - We study the effects of on-the-job skill accumulation on average hours worked by age and the volatility of hours over the life cycle in a calibrated general equilibrium model. Two forms of skill accumulation are considered: learning by doing and on-the-job training. In our economy with learning by doing, individuals supply more labor early in the life cycle and less as they approach retirement than they do in an economy without this feature. The impact of this feature on the volatility of hours over the life cycle depends on the value of the intertemporal elasticity of labor supply. When individuals accumulate skills by on-the-job training, there are only weak effects on both the steady-state labor supply and its volatility over the life cycle.
ER  -