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There has been considerable interest in both labor economics and macro economics in estimating the intertemporal elasticity of substitution for labor supply. In this paper, I solve and estimate a dynamic model that allows agents to optimally choose their labor hours and consumption over a continuum of positive real numbers, and that allows for both human capital accumulation and savings. Estimation results and simulation exercises indicate that the intertemporal elasticity of substitution is much higher than those estimated by MaCurdy (1981) or Altonji (1985), and that their estimates are biased downwards because of the omission of the human capital accumulation effect. The human capital accumulation effect renders the life-cycle path of the shadow wage relatively flat, even though wages increase significantly with age. Hence, a rather flat lifecycle labor supply path can be reconciled with a high intertemporal elasiticity of substitution.