The model Overview Describes choices from the point where statutory education ends up until mid career We take those who end formal education at 16 Utility is linear in earnings -so effectively individuals would maximise lifetime income except for the fact that they like leisure In our context liquidity constraints and uncertainty are not a factor because of linearity Wages are match specific- So part of wage growth comes from looking for better jobsThe Model Overview • Describes choices from the point where statutory education ends up until mid career. • We take those who end formal education at 16. • Utility is linear in earnings – so effectively individuals would maximise lifetime income except for the fact that they like leisure • In our context liquidity constraints and uncertainty are not a factor because of linearity. • Wages are match specific – So part of wage growth comes from looking for better jobs