Vocational Economics Inc.
Vocational Economics Inc. staff

Proxy Use

Below is a list of article supporting use of a proxy in estimating earning capacity.

Albrecht, Gary.  “Forecasting the Earnings of a Partially Disabled Individual.”  Journal of Legal Economics, July 1991, 50-57.   

While discussing a method for calculating lost earnings, the author includes the possibility of using Census Bureau data on the average earnings for persons with a work disability by educational level.

Dillman, Everett G.  “The Age-Earnings Cycle – Earnings by Education.”  Journal of Forensic Economics, December 1988, 105-116.   

The author discusses the age-earnings cycle and notes that for people with little or no demonstrated earning capacity, earnings can be estimated by using a relevant statistical cohort group, such as average earnings by education.

Dillman, Everett G.  “Interfacing the Economic and Vocational in Personal Injury Cases.”  Journal of Forensic Economics, May 1988, 55-76.   

The author discusses the interaction between the vocational and economic elements in assessing lost earnings.  As part of this, he notes as possibilities for the estimation of earning capacity, the use of average earnings by educational level or through the use of vocational factors as outlined in the U.S. Department of Labor's Dictionary of Occupational Titles.  

Martin, Gerald D.  Determining Economic Damages.  Costa Mesa, California:  James Publishing, 1997.   

This book includes a discussion of many elements of determining economic damages.  When dealing with earnings estimates, the book discusses use of average earnings for various cohort groups, such as educational level or occupation, to estimate a plaintiff's earnings.

Toppino, David and Dawn Boyd.  “Wage Loss Analysis:  Vocational Expert Foundation and Methodology.”  Journal of Legal Economics, July 1993, 69-79.   

The authors note that while use of actual, historical earnings might be most appropriate for estimating the earning capacity of certain plaintiffs, use of statistical cohort groups is more appropriate for others, such as those with a limited or nonexistent work history.


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