1. Choice of leisure and goods consumption over the life cycle
Life Cycle Model
Choice of leisure and goods consumption over the life cycle

2. B. Bosworth, G. Burtless and C
B. Bosworth, G. Burtless and C. Sahn “The Trend in Lifetime Earnings Inequality and Its Impact on the Distribution of Retirement Income” August 2001

3. Male Labor force Participation Rates by Age
1948
2003
F.D. Blau, M.A. Ferber and A.E. Winkler, The Economics of Women, Men and Work 5th ed. Upper Saddle River, NJ: Pearson Prentice Hall.2006

4. B. Bosworth, G. Burtless and C
B. Bosworth, G. Burtless and C. Sahn “The Trend in Lifetime Earnings Inequality and Its Impact on the Distribution of Retirement Income” August 2001

5. Female Labor force Participation Rates by Age
2003
1980
1960
1940
F.D. Blau, M.A. Ferber and A.E. Winkler, The Economics of Women, Men and Work 5th ed. Upper Saddle River, NJ: Pearson Prentice Hall.2006

6. Lt wt Ht

7. Life Cycle Model (No discounting)
Annual consumption of goods and leisure
Annual time budget
Lifetime income
Annual goods consumption

8. Income and Substitution effects
Do fully anticipated wage increases have income effects? Substitution effects?
Do unanticipated wage increases have income effects? Substitution effects?
Transitory versus permanent wage shocks

9. Life expectancy at birth by gender, 1900—1990
How does rising life expectancy affect lifetime income? Leisure consumption?
Source: Robert Wood Johnson Foundation, Chronic Care in America: A 21st Century Challenge.

10. Earnings expectations: early information is not perfect
B. Bosworth, G. Burtless and C. Sahn “The Trend in Lifetime Earnings Inequality and Its Impact on the Distribution of Retirement Income” August 2001

11. Earnings expectations: early information is not perfect
B. Bosworth, G. Burtless and C. Sahn “The Trend in Lifetime Earnings Inequality and Its Impact on the Distribution of Retirement Income” August 2001