TY  - UNPD
A1  - Kraft, Holger
A1  - Munk, Claus
A1  - Seifried, Frank Thomas
A1  - Steffensen, Mogens
T1  - Consumption and wage humps in a life-cycle model with education : [version 11 june 2014]
T2  - SAFE working paper series ; No. 53
N2  - he observed hump-shaped life-cycle pattern in individuals' consumption cannot be explained by the classical consumption-savings model. We explicitly solve a model with utility of both consumption and leisure and with educational decisions affecting future wages. We show optimal consumption is hump shaped and determine the peak age. The hump results from consumption and leisure being substitutes and from the implicit price of leisure being decreasing over time; more leisure means less education, which lowers future wages, and the present value of foregone wages decreases with age. Consumption is hump shaped whether the wage is hump shaped or increasing over life.
T3  - SAFE working paper - 53 
KW  - education
KW  - leisure
KW  - consumption hump
KW  - wage hump
Y1  - 2014
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/34326
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-343269
UR  - http://ssrn.com/abstract=2456940
IS  - Version 11 June 2014
PB  - SAFE
CY  - Frankfurt am Main
ER  -