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The key idea of the life-cycle model of labor supply is that people allocate working time to periods when their wages are higher Owork less
The key idea of the life-cycle model of labor supply is that people allocate working time to periods when their wages are higher Owork less once they accumulate financial assets move along a backward-bending labor supply curve over their careers Owork shorter workweeks mid-career because the income effect dominates the substitution effect
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