Economic Analysis in Employment Cases, Part 1

Business ProfessionalsWorklife – A statistical average of the number of years a person will be working. It factors out the probability of death, sickness, child rearing, and leaving the labor force.

Generally, the Worklife Expectancy Tables by the Bureau of Labor Statistics (BLS) were considered most authoritative but they are out of date (1986 has been the most recent). For instance, since 1986 worklife expectancy for women has increased. Subsequently, the few Worklife tables constructed by forensic economists using BLS employment data are reliable.

The flaws of using ‘retirement’ age or Social Security eligibility age are that these do not consider the above consideration of the expected worklife.

Including an analysis using worklife is absolutely necessary. BUT since worklife is a statistical average and plaintiff may exceed expected worklife, it is reasonable to consider an alternative scenario of ‘retirement’ age in addition to the worklife scenario.

There are other worklife expectancy tables that have been constructed that consider education levels, occupation and other aspects. Lately, I’ve been using the worklife tables in Journal of Forensic Economics 14(3) 2001, pp. 203-227. The authors’ are Hunt, Pickersgill & Rutemiller.

About George Jouganatos, Ph.D.

Professor of economics for over 18 years, taught economics, finance, and quantitative analysis at UC Davis and Santa Cruz, California State University, Sacramento, and University of San Francisco. Has written many economic impact, efficiency, cost, and feasibility studies; designed economic models, strategic plans, and performance measures. Has written and conducted seminars in the field of economics of development, political economy, economic history, environmental economics, public policy, operational analysis, and economic modeling and forecasting. Over 25 years of consulting services providing economic and statistical analysis for the private and public sectors. Specialties include, but not limited to, personal injury, wrongful death, wrongful termination, housing discrimination, employment discrimination, economic loss, business valuations, lost profits, divorce, general economic and public finance issues. Consultation and testimony for numerous attorneys in California, New York, Nevada, Iowa, Montana, British Columbia, Oregon, New Mexico, and Hawaii. Expert witness and article contributor for www.ForensisGroup.com

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