The Life-Cycle Model with Optimal Individual Years of Schooling and Simulation

In this paper, we use a discrete lift-cycle model to inquire the relationship between the individual saving and years of schooling. It is proved that there exist optimal years of schooling for individual to maximize his lifetime utility and the optimal years of schooling increases with respect to the wage growth rate and the quantity of human capital growth rate. The individual saving behavior and his asset change under different years of schooling is presented by the numerical simulation.