Table 5.
Job Displacements and Health Conditions
| Latent Variable: Log of Risk Tolerance
| ||
|---|---|---|
| Parameter | All Gamble Respondents | Balanced Panel of HRS |
| Direct Effect: β | ||
| Previous Job Displacement | −0.06 (0.07) |
−0.11 (0.08) |
| Previous Health Condition | −0.09 (0.06) |
−0.15 (0.07) |
| Type Effect: λ | ||
| Ever Job Displacement |
0.19 (0.06) |
0.20 (0.07) |
| Ever Health Condition | 0.02 (0.06) |
0.06 (0.07) |
|
| ||
| Log-likelihood | −23573.5 | −13426.4 |
|
| ||
| Number of Respondents | 12,003 | 6,591 |
NOTE: Asymptotic standard errors are in parentheses. Estimates in bold are statistically significant at the 5% level. A job displacement is a job ending with a firm closure or layoff. A health condition is heart disease, stroke, cancer, or lung disease. The model in the first column is estimated with all the gamble respondents. Appendix Table 1 provides the full set of covariates and estimates. The model in the second column only uses the gamble responses of the individuals who respond to all six HRS waves 1992–2002.