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AN ESTIMABLE DYNAMIC GENERAL EQUILIBRIUM MODEL OF WORK, SCHOOLING, AND OCCUPATIONAL CHOICE*
Author(s) -
Lee Donghoon
Publication year - 2005
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/j.0020-6598.2005.00308.x
Subject(s) - earnings , general equilibrium theory , economics , subsidy , work (physics) , cohort , econometrics , overlapping generations model , labour economics , demographic economics , microeconomics , mathematics , statistics , engineering , mechanical engineering , accounting , market economy
This article develops and estimates a dynamic general equilibrium overlapping‐generations model of career decisions. The model is fit to data on life cycle employment, schooling, and occupation decisions and on life cycle labor earnings, within and between cohorts observed in the United States between 1968 and 1993. Based on the estimates of the model, the impact of cohort size on skill prices and the general equilibrium effect of a tuition subsidy are assessed.