Table 7.

Choice Probabilities of Illustrative Person at Different Ages Using Alternate Models of Health

	Traditional Model w/Binary S-R Health		Continuous Health Model		Continuous Health w/σκ Fixed at Binary Value
	Good Health	Bad Health	Good Health	Bad Health	Good Health	Bad Health
	AGE=55
Labor Force Exit (N+A)	0.079	0.452	0.079	0.244	0.071	0.336
Non-Work (N)	0.068	0.111	0.067	0.096	0.061	0.149
Apply DI (A)	0.011	0.341	0.011	0.148	0.010	0.186
	AGE=60
Labor Force Exit (N+A)	0.094	0.426	0.083	0.245	0.082	0.340
Non-Work (N)	0.088	0.183	0.074	0.140	0.074	0.207
Apply DI (A)	0.006	0.243	0.008	0.105	0.008	0.133
	AGE=62
Labor Force Exit (N+A)	0.159	0.513	0.112	0.293	0.120	0.403
Non-Work (N)	0.147	0.286	0.102	0.191	0.110	0.259
Apply DI (A)	0.012	0.227	0.010	0.101	0.010	0.144
	AGE=64
Labor Force Exit (N+A)	0.115	0.515	0.114	0.303	0.125	0.411
Non-Work (N)	0.107	0.158	0.105	0.190	0.114	0.251
Apply DI (A)	0.008	0.356	0.009	0.113	0.010	0.160
	AGE=65
Labor Force Exit (N+A)	0.091	0.291	0.111	0.274	0.118	0.359
Non-Work (N)	0.091	0.291	0.111	0.274	0.118	0.359
Apply DI (A)	NA*	NA*	NA*	NA*	NA*	NA*

^*person cannot apply for Disability Insurance at age 65 or older.