Kelly Rathje
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Estimating non-discriminatory lifetime earnings for young females
This articles examines the sources of male/female earnings differentials that might arise from differences between the sexes in labour force participation rates, part-time hours, and retirement ages. It concludes that, even in the absence of labour market discrimination, women may earn 25 to 35 percent less than men. Continue reading
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The Discount Rate Revisited
In this article we review the recent evidence – both statistical and theoretical – concerning the discount rate (or real rate of interest). We review a number of different interest rates for each quarter since 1995 and find that every series has trended downward virtually continuously over the entire period. We then review the theoretical… Continue reading
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Retirement trends in Canada
This article compares retirement ages of Canadians over the five year period 1991-95 to retirement ages of Canadians over the five year period 1996-2000. The findings show that for most educational and industry categories, Canadians are retiring earlier than they did even five years ago. Continue reading
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Selecting the Discount Rate – An Update
This article extends the work done by us in issues 5(3) and 6(4) of The Expert Witness, we conclude that it would be appropriate to revise our existing 2½ and 3½ percent two-part forecast of real interest rates. We propose to use a rate of 2¼ percent for the first five years of all calculations.… Continue reading
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Male Versus Female Earnings – Is the Gender Wage Gap Converging?
In this article Kelly Rathje examines current and projected trends in educational attainment and labour force participation – two factors which influence earnings. Then, she present the results of some recent research regarding the projected gender wage gap. Next, she considers the implications of these results for the estimation of the potential incomes of young… Continue reading
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Selecting the Discount Rate – An Update
In this article the consultants at Economica have combined to review the most recent information concerning the “discount rate;” that is, the rate of interest at which plaintiffs are assumed to invest their award. Continue reading
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What is Econometrics?
In this article Chris Bruce and Kelly Rathje explain the fundamental principles of “econometrics”. Continue reading
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Evaluation of Harm to a Class of Individuals
In this article Kelly Rathje explains how the estimates of damages can be improved if the plaintiff is one of a class of individuals who have been affected by the same harm. In such cases, a statistical technique known as econometrics can be employed to compare the earnings capacity of the victims of the harm… Continue reading
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Selecting the Discount Rate
In this article we begin by providing clear definitions of a number of fundamental concepts. These include: real interest rate; nominal interest rate; discount rate; real return bonds; and core rate of inflation. We then summarise the recent statistical data for various measures of inflation and interest rates in Canada. Finally, we use those data… Continue reading
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Rates of Return to Advanced Education in Alberta
This article, by Kelly Rathje, is based on the thesis she wrote for her M.A. in economics from the University of Calgary. Her thesis concerns the costs and benefits of post-secondary education. In particular, she views education as an “investment” in oneself. The costs of that investment are tuition, books, and foregone income. The benefits… Continue reading