Format:
1 Online-Ressource
Content:
This article critiques the utilization of the life, participation, and employment approach of determining work-life expectancy as a means for calculating the present value of lost future earnings. Using data obtained from the Department of Labor, the paper illustrates that the basic assumption of economists using the approach that working people are only employed full-time is inaccurate at all ages, and especially after age 65. The lack of accurate and detailed data limitations on the average hours of work, average hourly earnings, and the hourly fringe benefits at each age make practical and unbiased implementation difficult. Until better data is available we cannot expect the approach to produce present value estimates consistent with the underlying theory
Note:
In: Journal of Legal Economics, Vol. 8, No. 1
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Volltext nicht verfügbar
Language:
English
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