Guerra, ManuelPereira, JoãoSt. Aubyn, Miguel2018-11-142018-11-142018-11Guerra, Manuel, João Pereira e Miguel St. Aubyn (2018). "Life cycles with endogenous time allocation and age-dependent mortality". Instituto Superior de Economia e Gestão – REM Working paper nº 056 - 20182184-108Xhttp://hdl.handle.net/10400.5/16339The negative effect of population aging on the economy can be mitigated by a behavioral effect of people as a reaction to a higher life expectancy. We analyze the optimal life-cycle of individuals that allocate time at the intensive margin between leisure, human capital accumulation, and labor supply while facing an age-dependent mortality. This allows to enhance effects of changes in life expectancy on labor supply and human capital accumulation and to uncover trade-offs between time allocations at different stages of the life-cycle. Our life-cycles are characterized by on the job training throughout all the working life with a possibility of a temporary exit from the labor market. We simulate the model numerically and find that with a higher life expectancy, labor supply increases at the intensive margin and the individual invests more in human capital. We also find a willingness to increase labor supply at the extensive margin.engLife-CycleAge-Dependent MortalityAgingTime Allocationworking paper