4 Applications
In this section we review the substantive contributions of the DCDP literature to three main areas of labor economics: (i) labor supply (female and male), (ii) job search and (iii) human capital.
4.1 Labor supply
The literature on dynamic labor supply models can be usefully divided into that on females and males. This is because the two literatures have emphasized different aspects of behavior. A key feature of female labor supply is that a large percentage of women (particularly married women) do not work during significant portions of their life cycle. The central role of the decision of whether or not to work has made the DCDP approach more common in the study of female labor supply than in the literature on males.
The literature ...
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