Table 5.
Estimates of Model (behavioral equations and covariance terms)
| Baseline | Traditional model with Binary Health | |
|---|---|---|
|
|
||
| Estimate (Std. Error) | Estimate (Std. Error) | |
|
|
||
| Pecuniary Utility | ||
| τ | .336 (.060) | .325 (.060) |
| UnpC(t) Non-Pecuniary Utility Career (C) | ||
| Constant | .546 (.338) | .772 (.193) |
| ληC (Health, η) | −.776 (.397) | −1.590 (.242) |
| λHI (Has Health Insurance) | .063 (.043) | .131 (.102) |
| UnpB(t) Non-Pecuniary Utility Bridge (B) | ||
| Constant | −.908(.486) | .242 (.197) |
| ληB (Health, η) | −1.357(.351) | −2.978 (.394) |
| λHI (Has Health Insurance) | .063 (.043) | .131 (.102) |
| UnpA(t) Non-Pecuniary Utility DI (A) | ||
| Constant | −2.102(.399 ) | −3.496 (1.690) |
| ληA (Health, η) | .851 (.212) | 2.900 (1.657) |
| λHI (Has Health Insurance) | .063 (.043) | .131 (.102) |
| UnpN(t) Non-Pecuniary Utility Non-Work (N) | ||
| Constant | Normalized to zero | Normalized to zero |
| ληN (Health, η) | Normalized to zero | Normalized to zero |
| λHI (Has Health Insurance) | .063 (.043) | .129 (.104) |
| Health Equation | See Table 4 | N.A. |
| Initial Conditions Equation | See Table 4 | Not Shown |
| Covariance Terms | ||
| σκ | 1.423 (.322) | .824 (.052) |
| COV(εI, νt) | −.309 (.106) | −.319 (.125) |
| COV(μt, εtC) | −.191 (.173) | N.A. |
| COV(μt, εtB) | .216 (.128) | N.A. |
| COV(εI, κ) | −.784 (.412) | .008 (.255) |
|
| ||
| Log Likelihood Function Value | −940.033 | |
Although not shown, each non-pecuniary equation also includes two dummy variables characterizing a person’s education level (less than high school and more than high school). The effect of health insurance is constrained to be the same across choices.