Abstract
The sensitivity of the supply of labor to intertemporal variation inthe wage is an important issue in macroeconomics, the analysis of socialsecurity and pensions, and the study of life cycle patterns of work. Thispaper explores two approaches to the measurement of intertemporal substi-tution which have appeared in the literature. The first approach is touse consumption to control for wealth and unobserved expectations aboutfuture wages in the labor supply equation. The second...