Summary • As individuals age, there are several systematic pat-terns in their labour supply—withdrawing to have children, and eventually retiring from the labour force—that require modifications of the static labour supply model developed in Chapter 2. • Interpretation of the cross-section correlation between age and labour force status as represent-ing the “pure”effect of age is problematic, especial-ly for women.This arises because of cohort effects, or the difficulty of separating out “age” from “vin-tage” (or year of birth) at a single point in time. Specifically for women, the age-participation pro-files have been shifting upward over time, as each subsequent cohort of women is more attached to the labour market than previous ones. • Incorporating individual decisions to work in one time period versus another involves a straightfor-ward extension of the static labour supply model.
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