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Author: Stern, Steven
Resulting in 3 citations.
1. Berkovec, James
Stern, Steven
Job Exit Behavior of Older Men
Econometrica 59,1 (January 1991): 189-210.
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/Retirement Planning; 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.
2. Stern, Steven
Estimating a Simultaneous Search Model
Journal of Labor Economics 7,3 (July 1989): 348-369.
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Educational Attainment; Gender Differences; Job Search; Research Methodology; Simultaneity; Unemployment; Unemployment Duration; Wages; Wages, Reservation

The primary goal of this work is to specify and estimate a structural simultaneous job search model and then determine the empirical importance of simultaneous search. The results indicate that new labor force entrants search simultaneously. A secondary goal is to identify and estimate job offer arrival rates and wage offer rejection probabilities separately. The results indicate that a significant portion of unemployment spells is caused by slow arrival rates, but policies intended to speed arrival rates would increase the average length of unemployment spells.
Bibliography Citation
Stern, Steven. "Estimating a Simultaneous Search Model." Journal of Labor Economics 7,3 (July 1989): 348-369.
3. Stern, Steven
Todd, Petra E.
Test of Lazear's Mandatory Retirement Model
In: Worker Well-Being, Research in Labor Economics, Volume 19. S.W. Polachek, ed. New York, NY: JAI Press, 2000: pp. 253-273
Cohort(s): Older Men
Publisher: JAI Press, Inc.
Keyword(s): Modeling, Mixed Effects; Retirement/Retirement Planning

Discusses several testable implications of Lazear's (1979) model of mandatory retirement and assesses whether they are consistent with data from a national survey. Two hypotheses are tested, using data from the National Longitudinal Survey of Mature Men (NLS): mandatory retirement programs should include pension programs as part of the plan and they should be efficient; and workers subject to mandatory retirement should be no more likely to retire early than workers not subject to mandatory retirement. The NLS data set contains observations on 5,020 men aged 45-59 in 1966, who were followed from 1966 until 1983 with interviews conducted approximately every other year. Empirical evidence on the first hypothesis indicates a high positive correlation between the existence of pension plans and mandatory retirement programs, possibly lending support to this prediction of Lazear's model. However, data limitations precluded determining whether existing pension programs were efficient. In examining the second hypothesis, an econometric model for retirement behavior was estimated and used to contrast results for workers who were and were not subject to mandatory retirement programs. Results indicate that workers subject to mandatory retirement are more likely to retire early than those who are not, even at ages well before the mandatory retirement age. This evidence rejects an important prediction of Lazear's model and suggests that it does not capture the whole story in explaining the mandatory retirement phenomenon. (AR) (AgeLine Database, copyright 2002 AARP, all rights reserved)
Bibliography Citation
Stern, Steven and Petra E. Todd. "Test of Lazear's Mandatory Retirement Model" In: Worker Well-Being, Research in Labor Economics, Volume 19. S.W. Polachek, ed. New York, NY: JAI Press, 2000: pp. 253-273