Labor Supply Flexibility and Portfolio Choice

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Zvi Bodie; William Samuelson;

This paper develops a model showing that people who have flexibility in choosing how much to work will prefer to invest substantially more of their money in risky assets than if they had no such flexibility. Viewed in this way, labor supply flexibility offers insurance ... View more
  • References (3)

    KillingwOrth, Mark R., Labor Sulv, Cambridge University Press, Cambridge, U.K., 1983.

    Mayers, David, "Non-Marketable Assets and Capital Market Equilibrium Under Uncertainty," in M. Jensen (ed.), Studies in the Theory of Capital Markets, New York: Praeger, 1972.

    Williams, Joseph, "Risk, Human Capital, and the Investor's Portfolio," Journal of Business, Vol. 51, No. 1, 1978, 65-

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