Strulik, Holger; Werner, Katharina - Center for European, Governance and Economic … - 2012
We set up a simple overlapping generation model that allows us to distinguish between life expectancy and active life … expectancy. We show that individuals optimally adjust to a longer active life by educating more and, if the labor supply … increasing education and declining labor supply (of cohorts born 1850-1950) as an optimal response to increasing active life …