Real wages and labor supply in a quasi life-cycle framework : A macro compression by Swedish National Transfer Accounts (1985-2003)
This paper examines the life-cycle dynamics of real wages and labor supply in Sweden. The descriptive results lend support to the inter-temporal substitution hypothesis (ISH), as the age patterns of real wages and the labor supply are both hump-shaped. However, the age-wage profiles increasingly shift toward older ages over time, whereas the age-employment profiles do not. This leads to an accentu
