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. Author manuscript; available in PMC: 2019 Oct 1.
Published in final edited form as: Labour Econ. 2018 Aug 13;54:116–134. doi: 10.1016/j.labeco.2018.08.001

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.