Data from Austrian Academy of Sciences Provide New Insights into Economic Dynamics (Education, lifetime labor supply, and longevity improvements)

Insurance Business Weekly

By a News Reporter-Staff News Editor at Insurance Business Weekly -- New research on Economics - Economic Dynamics is the subject of a report. According to news reporting originating from Vienna, Austria, by VerticalNews correspondents, research stated, "This paper presents an analysis of the differential role of mortality for the optimal schooling and retirement age when the accumulation of human capital follows the so-called 'Ben-Porath mechanism'. We set up a life-cycle model of consumption and labor supply at the extensive margin that allows for endogenous human capital formation."

Financial supporters for this research include Max Planck Institute for Demographic Research (Rostock, Germany), European Research Council.

Our news editors obtained a quote from the research from the Austrian Academy of Sciences, "This paper makes two important contributions. First, we provide the conditions under which a decrease in mortality leads to a longer education period and an earlier retirement age. Second, those conditions are decomposed into a Ben-Porath mechanism and a lifetime human wealth effect vs. the years-to-consume effect."

According to the news editors, the research concluded: "Finally, using US and Swedish data for cohorts born between 1890 and 2000, we show that our model can match the empirical evidence."

For more information on this research see: Education, lifetime labor supply, and longevity improvements. Journal of Economic Dynamics & Control, 2016;73():118-141. Journal of Economic Dynamics & Control can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Economic Dynamics & Control - www.journals.elsevier.com/journal-of-economic-dynamics-and-control/)

The news editors report that additional information may be obtained by contacting M. Sanchez-Romero, Austrian Academy Sci, Vienna Inst Demog, Wittgenstein Center Demog & Global Human Capital, IIASAVID OAWWU, A-1010 Vienna, Austria. Additional authors for this research include H. d'Albis and A. Prskawetz.

Keywords for this news article include: Vienna, Austria, Europe, Economic Dynamics, Economics, Austrian Academy of Sciences.