Table 20:
Selected Parameter Estimates in Robustness Analysis
| Value of Outside Option for the Non-disabled (bND) | 
|||
|---|---|---|---|
| 0.65μND | 0.75μND (benchmark) | 0.80μND | |
| κ | 9.26 | 8.26 | 6.04 | 
| μND | 2.00 | 1.92 | 1.73 | 
| σz | 0.27 | 0.23 | 0.12 | 
| CF,D (% wage) | 9.0 | 9.2 | 9.5 | 
| CH,D (% wage) | 0.3 | 0.9 | 2.0 | 
Note: In all cases, the value of the outside option for the disabled is fixed at 90% of that worker’s productivity, i.e., bD = 0.9μD The model performance is similar to that in the benchmark case across all three specifications.