Author: Parsons, Donald O.
1. D'Amico, Ronald
Hills, Stephen M.
Lynch, Lisa M.
Morgan, William R.
Nestel, Gilbert
Olsen, Randall J.
Parsons, Donald O.
Willke, Richard
Pathways to the Future, Volume VI: A Report on the National Longitudinal Surveys of Labor Market Experience of Youth in 1984
Columbus OH: Center for Human Resource Research, The Ohio State University, January 1986
Publisher: Center for Human Resource Research
Keyword(s): All-Volunteer Force (AVF); Children; Comprehensive Employment and Training Act (CETA); Earnings; Education; Educational Costs; Employment, In-School; Family Resources; Job Training; Labor Market Outcomes
This report describes the work experience of a nationally-representative sample of 12,000 Americans who were age 14-21 when first interviewed in 1979 and who have been surveyed annually since then. Willke - Chapter One examines welfare, education, and labor market outcomes for CETA participants and non-participants. Lynch - Chapter Two aims to identify the influences on the length of time young people are unemployed. Olsen - Chapter Three examines a method for determining the existence and impact of selection bias, which is known to affect outcomes of labor policy discussions depending on how the bias is corrected. Hills - Chapter Four examines the long-run impact of teen-age unemployment on later labor market success. Morgan - Chapter Five examines variation within families in investment of resources in their children's educational and occupational attainment process. D'Amico - Chapter Six adds evidence to other studies showing how pervasive employment is among high school youth. Parsons - Chapter Seven provides information about the on-the-job training provided to young men by private employers. Nestel - Chapter Eight compares the post-school work experience of youth who served in the All-Volunteer Force and those who did not.
D'Amico, Ronald, Stephen M. Hills, Lisa M. Lynch, William R. Morgan, Gilbert Nestel, Randall J. Olsen, Donald O. Parsons and Richard Willke. Pathways to the Future, Volume VI: A Report on the National Longitudinal Surveys of Labor Market Experience of Youth in 1984. Columbus OH: Center for Human Resource Research, The Ohio State University, January 1986.
2. Fleisher, Belton M.
A Disaggregate Study of the Effect of Unemployment Rates on Labor Supply
Report, Manpower Administration, U.S. Department of Labor, 1975
Cohort(s): Mature Women, Older Men
Publisher: U.S. Department of Labor
Keyword(s): Census of Population; Children; Heterogeneity; Marital Status; Research Methodology; Schooling; Unemployment; Unemployment Compensation
The project focuses on two loosely-related hypotheses regarding a contradiction existing in the results of previous research on the relationship between labor force participation and unemployment. This contradiction is the persistent tendency of the estimated effect of unemployment on labor force participation--and hence estimates of hidden unemployment--to be greater when cross section data based on SMSA aggregates are used than when economy- wide time series data are used. The hypotheses put forward to explain this contradiction are: (1) that the cross section estimates are biased as the result of labor force heterogeneity across SMSAs; and (2) that the problem of mutual determination of labor force participation and unemployment is a much more likely cause of spurious correlation between these two variables in the cross section than in the time series data.
Fleisher, Belton M. and Donald O. Parsons. "A Disaggregate Study of the Effect of Unemployment Rates on Labor Supply." Report, Manpower Administration, U.S. Department of Labor, 1975.
Porter, Richard D.
Asset Adjustments and Labor Supply of Older Workers
In: Income Maintenance and Labor Supply-Econometric Studies. G. Cain, et. al., eds.Madison, WI: Institute for Research on Poverty, University of Wisconsin - Madison, 1973
Cohort(s): Older Men
Publisher: Institute for Research on Poverty (IRP), University of Wisconsin - Madison
Keyword(s): Assets; Behavior; Income Dynamics/Shocks; Labor Supply
This paper focuses on the hypothesis that empirical research on labor supply, with reference to males in the age group where work is the normal mode of behavior, has suffered from the lack of an adequate formulation of the role of nonemployment sources of purchasing power in affecting labor-supply decisions. Recent extensions of the classical labor-supply model, that have proved fruitful in increasing understanding of the behavior of other groups in the work force, appear to be of little help in understanding the behavior of older primary workers--males between ages 45-59. This paper concentrates on the role of nonhuman assets and nonemployment income in the labor supply function of older workers. The authors present the derivation and empirical estimation of two variants of an asset-adjustment model of labor supply and develop a system of labor-supply equations in which hours of work for an individual are determined by wage rate and the difference between the actual and desired stock of nonhuman assets. The value of assets conditions work decisions principally relative to some desired asset level rather than through its level alone. A large number of the regressions yielded estimates of the labor-supply parameters that are quite plausible. In many of the regressions, the internal consistency is quite good. However, in the more complex model, in which the authors attempt to incorporate transitory wage effects as well, the results appear suspect. The major empirical problem uncovered in this study is the high sensitivity of labor supply estimates to different definitions of a given variable and to different sample compositions. This may be a characteristic of male workers in this age group, 45 to 59, because more traditional models suffer from the same problem. The results imply that dynamic aspects of asset adjustments cannot be ignored. Because the expected time path of supply responses depends critically on the asset value of the NIT program, one must conclude the inferences drawn from experimental short-term programs are likely to underestimate the impact on labor supply.
Fleisher, Belton M., Donald O. Parsons and Richard D. Porter. "Asset Adjustments and Labor Supply of Older Workers" In: Income Maintenance and Labor Supply-Econometric Studies. G. Cain, et. al., eds.Madison, WI: Institute for Research on Poverty, University of Wisconsin - Madison, 1973
Dynamic Analysis of the Labor Force Behavior of Men and Youth
Final Report, Employment and Training Administration, U.S. Department of Labor, 1972
Cohort(s): Older Men, Young Men
Keyword(s): Schooling; Unemployment Rate; Wages; Work Attitudes
A theoretical and empirical analysis is made of the labor force behavior of males aged 14-24 and 45-59. The economic forces (including wealth, wage rate, and unemployment rate) which influence the work and schooling decisions of males are examined, and the empirical importance of these and other factors is determined using data from the Older Men and Young Men.
Fleisher, Belton M., Donald O. Parsons and Richard D. Porter. "Dynamic Analysis of the Labor Force Behavior of Men and Youth." Final Report, Employment and Training Administration, U.S. Department of Labor, 1972.
5. Parnes, Herbert S.
Chirikos, Thomas N.
Daymont, Thomas N.
Mott, Frank L.
From the Middle to the Later Years: Longitudinal Studies of the Preretirement and Postretirement Experiences of Men
Report, Columbus OH: Center for Human Resource Research, The Ohio State University, 1979
Keyword(s): Employment; Family Background and Culture; Health/Health Status/SF-12 Scale; Household Income; Mortality; Retirement/Retirement Planning
The pre-retirement labor market behavior and the post-retirement experience of men between ages 45 and 69 are examined. This analysis shows the extension of the surveys beyond the originally planned five years. Both labor market behaviors and post-retirement experience are based on longitudinal data collected by periodic personal interviews with the same sample of men between l966 and l976. This is volume 5 in a series. This volume was also published by MIT Press as Work and Retirement.
Parnes, Herbert S., Gilbert Nestel, Thomas N. Chirikos, Thomas N. Daymont, Frank L. Mott and Donald O. Parsons. From the Middle to the Later Years: Longitudinal Studies of the Preretirement and Postretirement Experiences of Men. Report, Columbus OH: Center for Human Resource Research, The Ohio State University, 1979.
6. Parsons, Donald O.
Health, Family Structure, and Labor Supply
Keyword(s): Earnings; Family Resources; Health/Health Status/SF-12 Scale; Husbands; Simultaneity
This study discusses the interrelationship between health and the family's allocation of time. The author focuses attention on health effects of the joint labor supply of both spouses, and to the differential labor supply responses to poor health of married and single men. The impact of health on home production hours indicates how well older individuals and families can economically survive health problems. The empirical results indicate that married men in poor health work significantly more hours than single men, which is consistent with the belief that married men can marshal resources other than their own time (ie. wives' time, when faced with a health problem). Estimation of a simultaneous model of male labor supply suggests that other family income does not have a substantial effect on labor supply but that male labor supply has a significant effect in other family income. Only in households where the wife has a high level of education, does other family income increase. Finally, declining health of each partner leads to substantial market time withdrawal, while home work remains unchanged.
Parsons, Donald O. "Health, Family Structure, and Labor Supply." American Economic Review 67,4 (September 1977): 703-712.
Intergenerational Wealth Transfers and the Educational Decisions of Male Youth
Quarterly Journal of Economics 89,4 (November 1975): 603-617.
Also: http://qje.oxfordjournals.org/content/89/4/603.abstract
Publisher: Wiley Online
Keyword(s): Educational Returns; Family Resources; Income Distribution; Intergenerational Patterns/Transmission; Schooling; Transfers, Wealth
Results strongly document Knight's assertion about the effect of social institutions, particularly the family, on income distribution. Both the quantity and productivity of educational investments are significantly determined by family wealth, human and physical, parental schooling, and number of siblings. The intergenerational social question is how social institutions can be altered to reduce the relative disadvantage of individuals born into less well-placed families if that goal is, in fact, desirable. The rather modest contribution of this paper to that end is to give some quantitative measure to the relative importance of the major channels by which family characteristics influence schooling choice.
Parsons, Donald O. "Intergenerational Wealth Transfers and the Educational Decisions of Male Youth." Quarterly Journal of Economics 89,4 (November 1975): 603-617.
Models of Labor Market Turnover: A Theoretical and Empirical Survey
Research in Labor Economics 1 (1977): 185-223
Publisher: JAI Press, Inc.
Keyword(s): Behavior; Industrial Sector; Job Search; Job Tenure; Job Turnover; Mobility, Job
The author surveys some of the recent theoretical and empirical contributions to job attachment or, conversely, job turnover and explores the theoretical developments in search models of worker behavior. This is followed by a discussion of current labor market models of the firm with stress on firm turnover behavior in the presence of specific human capital and incomplete information. The recent literature introducing uncertainty into the firm- worker interaction is also reviewed. A number of important empirical studies of turnover behavior are examined. Most of these studies are only vaguely guided by current theory.
Parsons, Donald O. "Models of Labor Market Turnover: A Theoretical and Empirical Survey." Research in Labor Economics 1 (1977): 185-223.
On the Human Wealth of Females Across Generations
Cohort(s): Mature Women, Older Men, Young Men, Young Women
Keyword(s): Educational Attainment; Employment; Family Background and Culture; Family Influences; Fathers, Influence; Husbands, Income; Husbands, Influence; Wages; Well-Being
Using data from four NLS cohorts, the author estimates a recursive model in which family background first influences the daughter's schooling and then, with schooling, influences husband's characteristics and her market wage. The influence of family background on female economic well-being is empirically assessed, considering several measures of well-being: female schooling, husband's schooling and income, and finally female wages. The analysis of female schooling suggests that the four background characteristics considered (father's wage rate and schooling, mother's schooling, and number of siblings) strongly influence female schooling attainment with total explanatory power of about 30 percent for middle aged women. As expected, the family wealth measure and the parent's schooling (measuring perhaps the intellectual environment) positively influenced one daughter's schooling, while number of siblings, presumably an indicator of lower support ability, had a modest negative effect. The estimated background coefficients on schooling did not differ in any dramatic way from comparable estimates for male offspring. Husband's income regressions were then estimated with female schooling and background characteristics as explanatory variables. The schooling and background variables were found to have strong and independent effects on the income of the female's husband. Similar results were found when husband's schooling was used as a dependent variable under the argument schooling might be an observable measure of future earning power.
Parsons, Donald O. "On the Human Wealth of Females Across Generations." Report, Columbus OH: Center for Human Resource Research, The Ohio State University, 1976.
10. Parsons, Donald O.
Poverty and the Minimum Wage
Report, American Enterprise for Public Policy Research, 1980
Cohort(s): Mature Women
Publisher: American Enterprise Institute for Public Policy Research
Keyword(s): Earnings; Industrial Sector; Marital Status; Minimum Wage; Occupations; Poverty; Racial Differences; Transfers, Financial; Transfers, Public; Women
This report assesses the minimum wage as a poverty program. The author argues that the minimum wage is largely a reallocation among low-wage demographic groups: adult females as a group are the beneficiaries and teenagers of both sexes are the principal losers. Utilizing data from the NLS of Mature Women, particular attention is paid to the impact of minimum wages on the structure of wage rates and earnings during 1967-1974 (when the real level of minimum wages fell by almost 30 percent) and during 1974-1976 (when the real minimum was raised by 24 percent). The author estimates that wage rates of low-wage adult females were 10 to 20 percent higher in sectors with a minimum wage and were unaffected in the sector with no minimum. Employment reductions, however, limited annual earnings gains to less than $150 per low-wage female. The modest dimension of this gain raises serious question about the efficiency of minimum wages in transferring income to the poor.
Parsons, Donald O. "Poverty and the Minimum Wage." Report, American Enterprise for Public Policy Research, 1980.
Poverty Dynamics Among Mature Women: Evidence from the National Longitudinal Surveys, 1967-1989
Working Paper, Center for Human Resource Research and Department of Economics, The Ohio State University, January 1995
Keyword(s): Age and Ageing; Poverty; Retirement/Retirement Planning; Social Security; Transfers, Financial; Women
Massive transfer programs, especially the social security retirement program and the related supplemental security income system, have sharply reduced the poverty levels of aged Americans. In 1959 the poverty rate among persons 65+ was 57% greater than that of all persons in the U.S. (35.2% versus 22.4%). Thirty years later (1989) the rate was less than the population average (12.4% versus 14.2%). The incidence of poverty is not equal across the aging population, however. Citing a House Select Aging subcommittee report, a subcommittee member reported, "Women are 70 percent more likely to spend their retirement in poverty than men." (Columbus Dispatch, September 25, 1992) It is natural to ask how these women can be helped. At the same time, the huge expenditures required to secure the current reduction in poverty raises a second question of whether it is possible to achieve the same goal more cheaply. To confront either of these policy issues, it is important to know the origins of poverty among retirement age women. Without an understanding of the processes that lead to poverty among the aged, policy planners must rely on increased direct cash transfers to the aged, perhaps through an expanded SSI program, as the only poverty tool. Is aged poverty primarily an extension of a life long condition or is it the result of negative wealth shocks later in life such as a divorce or a husband's disability or death? The first possibility is a basic redistribution question and is unlikely to be resolved outside a broader agreement on the appropriate distribution of income. The second is a social insurance problem and is potentially resolvable with changes in the design of the current social insurance system.
Parsons, Donald O. "Poverty Dynamics Among Mature Women: Evidence from the National Longitudinal Surveys, 1967-1989." Working Paper, Center for Human Resource Research and Department of Economics, The Ohio State University, January 1995.
Racial Trends in Male Labor Force Participation
American Economic Review 70,5 (December 1980): 911-920.
Keyword(s): Racial Differences; Social Security; Unemployment; Wages; Welfare
The decline in labor force participation, particularly among blacks, is the result of increasingly attractive alternatives to work. The differentially large decline among blacks is due simply to their relatively poor market alternatives and the increasingly progressive structure of Social Security benefits. From a positive viewpoint, one would predict that if wage rates for blacks and whites do ultimately converge, their labor force participation behavior will converge as well.
Parsons, Donald O. "Racial Trends in Male Labor Force Participation." American Economic Review 70,5 (December 1980): 911-920.
Summary Tables: The National Longitudinal Surveys of Older Males 1966-1983
Keyword(s): Attrition; Employment; Health/Health Status/SF-12 Scale; Income; Labor Force Participation; Life Cycle Research; Marital Status; Occupational Status; Poverty; Retirement/Retirement Planning; Self-Employed Workers
This report presents a series of detailed descriptive tables summarizing some of the key life-cycle transitions in employment, health, income, marital status, and overall satisfaction experienced by the NLS cohort of older men as they aged. After a brief description of the cohort, it discusses the continued representativeness of the sample in terms of attrition due to death and the non-response rates for reasons other than death which remained remarkably low. The report continues with descriptions of the changing health status of surviving members, detailed life cycle variations in their labor force participation rates, the nature of work adjustments for those who work beyond typical retirement ages, the transformation of total family income, poverty over time for various age and ethnic groups, the changes in marital status from 1966 to 1983, and the shifts that occurred from 1976 to 1981 in the overall attitude of this group of older men toward their changing life-health-employment circumstances. All measures tell a consistent story, namely that retirement from the labor force is for the population as a whole an abrupt process occurring between the ages of 60 and 65 years of age.
Parsons, Donald O. "Summary Tables: The National Longitudinal Surveys of Older Males 1966-1983." Report, Columbus OH: Center for Human Resource Research, The Ohio State University, 1987.
Summary Tables: The National Longitudinal Surveys of Young Males 1966-1981
Keyword(s): Attrition; Educational Attainment; Labor Force Participation; Marital Status; Poverty; Racial Differences; Schooling; Unemployment; Wages; Well-Being
This report presents a series of detailed descriptive tables delineating the schooling and labor market experiences of this cohort of young men as they entered adulthood. Chapter 1 provides a brief description of the cohort and overviews the contents of succeeding chapters. Chapter 2 discusses the continued representativeness of the sample. In particular, response rates over the 15 year period are presented for the total sample as well as by ethnic group, age, IQ, and father's schooling. The cumulative non-response rate for blacks was found to be higher over the period than that for whites (46% versus 30% respectively) but does not appear to be significantly related to individual characteristics such as IQ or to family characteristics such as father's schooling. Chapters 3 and 4 detail the schooling experience and labor market experience of youth enrolled either full- or part-time in school. The impact of race and other individual and family factors such as father's educational attainment and respondents' IQ on years of schooling completed is explored. A variety of aspects of the employment experience of enrolled youth are examined namely annual hours worked, hourly wage rates, and rates of unemployment and labor force participation by age, race, and enrollment status. Chapters 5 and 6 discuss the post-schooling labor market experience i.e, employment and labor force participation rates and annual hours worked by age, race, educational attainment and enrollment status. In Chapter 7, the hourly wage rate by age, race, and schooling attainment is tabulated and implications for economic well-being examined. Chapter 8 describes the marital status transitions of this cohort of young men over the 15 year period and delineates differences by age, race and schooling attainment. Finally, Chapter 9 describes the impact of prior schoolingand race on adult economic well-being as measured by total family income and incidence of poverty.
Parsons, Donald O. "Summary Tables: The National Longitudinal Surveys of Young Males 1966-1981." Report, Columbus OH: Center for Human Resource Research, The Ohio State University, 1987.
The Autocorrelation of Earnings, Human Wealth Inequality, and Income Contingent Loans
Keyword(s): Colleges; Earnings; Educational Costs; Educational Returns; Schooling
Estimates of the covariance structure of earnings are presented for white male wage and salary earners in the United States. These estimates for intervals up to six years are then characterized by a two-component error structure, a simple autocorrelation scheme and an additional random element, the structure of which is used to estimate the variance of present values of earnings. The implications of these estimates, undertaken for three schooling levels (S = 12, 13-15, and 16), are then derived for the measurement of economic inequality and the optimal design of income contingent educational loans.
Parsons, Donald O. "The Autocorrelation of Earnings, Human Wealth Inequality, and Income Contingent Loans." Quarterly Journal of Economics 92,4 (November 1978): 551-569.
The Cost of School Time, Foregone Earnings, and Human Capital Formation
Journal of Political Economy 82,2 (March-April 1974): 251-266.
Keyword(s): Earnings; Educational Returns; High School; Human Capital Theory; Part-Time Work; Schooling
A simple educational investment model is used to demonstrate that, if students are subject to borrowing constraints, foregone earnings are not identical to schooling time costs, since students will sacrifice leisure as well as earnings. Direct measurement of schooling hours and work hours of young males reveals that at the high school level the bulk of school hours results from foregone leisure. A review of the foregone-earnings measures used in a number of major human capital studies is undertaken to determine the approximate bias in human capital formation and rate-of-return estimates resulting from this source.
Parsons, Donald O. "The Cost of School Time, Foregone Earnings, and Human Capital Formation." Journal of Political Economy 82,2 (March-April 1974): 251-266.
The Decline in Male Labor Force Participation
Journal of Political Economy 88,1 (February 1980): 117-134.
Keyword(s): Health/Health Status/SF-12 Scale; Social Security; Unemployment; Welfare
The rate of nonparticipation in market work among prime-aged males in the United States has risen persistently during the postwar period. The rate among males aged 45-54, for example, has risen from 4.5 percent to 8.4 percent from l947 to l976, with similar trends among other age groups. The principal hypothesis explored is that labor force withdrawal has been induced by the rapid expansion of welfare alternatives to work, principally the Social Security disability program. Cross-sectional evidence strongly confirms this hypothesis. Time-series projections of the cross-sectional model, moreover, track actual postwar trends in male labor force participation reasonably well.
Parsons, Donald O. "The Decline in Male Labor Force Participation." Journal of Political Economy 88,1 (February 1980): 117-134.
The Evolving Structure of Female Work Activities: Evidence from the National Longitudinal Survey of Mature Women, 1967-1989
NLS Discussion Paper No. 95-24, Washington DC: U.S. Bureau of Labor Statistics, December 1994.
Also: http://stats.bls.gov/ore/abstract/nl/nl940060.htm
Keyword(s): Labor Force Participation; Life Cycle Research; Part-Time Work; Training
The market work behavior of adult women in the United States has changed radically in the last several decades as a greater and greater share spend substantial time in the labor market. Despite this large time reallocation, comparatively little study has been devoted to the structure of the resulting work activities or to changes in that structure. In this study, data from the Mature Women's Cohort of the National Longitudinal Survey is used to characterize the life cycle evolution of work structure from an annual perspective. Work is partitioned into four categories based on two work dichotomies: full- or part-time weeks and full- or part-time hours per week. Three "part-time" work possibilities exist in this framework: i) part-time weeks and full-time hours per week, ii) full-time weeks and part-time hours per week, and iii) part-time weeks and hours per week. The analysis adopts a supply and demand framework. Employers have preferences for an employee's weeks per year and hours per week. Employer demands for weeks per year are likely to be influenced by seasonal and cyclical factors, while hours per week are likely to be affected by production and customer technologies. High training costs are likely to induce both greater weeks and greater hours per week. Similarly the worker is likely to have preferences over the total time she supplies to the firm and how these are divided into weeks and hours per week. For women with small children, the structure of the school year and of the school day are both likely to be important.
Parsons, Donald O. "The Evolving Structure of Female Work Activities: Evidence from the National Longitudinal Survey of Mature Women, 1967-1989." NLS Discussion Paper No. 95-24, Washington DC: U.S. Bureau of Labor Statistics, December 1994.
The Job Search Behavior of Employed Youth
Review of Economics and Statistics 73,4 (November 1991): 597-604.
Publisher: Harvard University Press
Keyword(s): Employment, Youth; Gender Differences; Job Search; Marital Status; Quits; Racial Differences; Wages
An employed worker's search strategies include: 1. employed-not searching, 2. employed-searching, and 3. unemployed-searching, which requires that the worker quit work in order to search. Under plausible assumptions on search costs, the optimal algorithm involves a dual reservation wage strategy. The probability of on-the-job search increases as the current wage decreases relative to the distribution of alternative wages. If the wage is sufficiently low, the searcher quits to search, substituting time for financial outlays. Estimates based on the National Longitudinal Survey of Youth indicate that these calculations characterize the search strategies of young workers. The simulations indicate that, as own wage increases from 30% below the mean wage to 30% above it, quitting-to-search falls from 10.7% to 5.2% among males and from 14.8% to 5% among females. Searching on-the-job decreases as well, although less dramatically. (ABI/Inform)
Parsons, Donald O. "The Job Search Behavior of Employed Youth." Review of Economics and Statistics 73,4 (November 1991): 597-604.
The Male Labor Force Participation Decision: Health, Reported Health, and Economic Incentives
Economica 49,193 (February 1982): 81-91.
Keyword(s): Health/Health Status/SF-12 Scale; Self-Reporting; Social Security; Unemployment; Welfare
In this study, a recursive model of non-participation and self-rated health is estimated. Economic incentive variables strongly influence the participation decision and health assessment. In addition, the magnitude of bias in labor supply models that use self-rate health is estimated.
Parsons, Donald O. "The Male Labor Force Participation Decision: Health, Reported Health, and Economic Incentives." Economica 49,193 (February 1982): 81-91.
Fleisher, Belton M.
Marvel, Howard P.
Economic Responses to Poor Health in Older Males: Final Report and Executive Summary
Final Report, National Center for Health Services Research, 1980
Publisher: National Center for Health Services Research
Keyword(s): Assets; Family Resources; Health/Health Status/SF-12 Scale; Household Models; Marital Status; Occupations; Pensions; Simultaneity; Social Security
The purpose of this research is to examine the impact of poor health of older males on a wide variety of labor market activities, particularly with the differential response of men to poor health as a function of their family situation. It is noted that unmarried men in poor health work substantially less than married men. Occupation also affects the response. The household model is developed at both the theoretical and empirical level. Particular attention is given to adjustment cost factors such as work hour adjustment costs and market entry costs for females and asset adjustment costs for different types of assets. The principal data base for the empirical analysis is the NLS of Older Men ages 45 to 59 in l966, the initial survey year. The empirical models are estimated using ordinary least squares and two and three stage least squares simultaneous techniques and, when appropriate, nonlinear methods.
Parsons, Donald O., Belton M. Fleisher and Howard P. Marvel. "Economic Responses to Poor Health in Older Males: Final Report and Executive Summary." Final Report, National Center for Health Services Research, 1980.