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Author: Berkovec, James
Resulting in 1 citation.
1. Berkovec, James
Stern, Steven
Job Exit Behavior of Older Men
Econometrica 59,1 (January 1991): 189-210.
Also: http://www.jstor.org/stable/2938246
Cohort(s): Older Men
Publisher: Department of Economics, Northwestern University
Keyword(s): Age and Ageing; Education; Employment; Employment, History; Health Factors; Health/Health Status/SF-12 Scale; Heterogeneity; Labor Economics; Modeling; Quits; Retirement; Unemployment

Permission to reprint the abstract has not been received from the publisher.

A dynamic programming model of job exit behavior and retirement is constructed and estimated using the method of simulated moments.The model and estimation method allow for both unobserved individual effects and unobserved job-specific "match" effects. The model is estimated using two different assumptions about individual discount factors. First, a static model, with the discount factor equal to zero, is estimated. Then a dynamic model, with the discount factor equal to .95 is estimated. In both models, it is found that bad health, age, and lack of education increase the probability of retirement. The dynamic model performs better than the static model and has different implications for retirement behavior. The job-specific effects are an important source of unobserved heterogeneity.
Bibliography Citation
Berkovec, James and Steven Stern. "Job Exit Behavior of Older Men." Econometrica 59,1 (January 1991): 189-210.