We study the effects of on-the-job skill accumulation on average hours worked by age and
the volatility of hours over the life cycle in a calibrated general equilibrium model. Two forms
of skill accumulation are considered: learning by doing and on-the-job training. In our
economy with learning by doing, individuals supply more labor early in the life cycle and
less as they approach retirement than they do in an economy without this feature. The
impact of this feature on the volatility of hours over the life cycle depends on the value of the …