Markov Process Work-Life Expectancy Tables, the LPE Method for Measuring Worklife Expectancy, and Why the Gamboa-Gibson Worklife Expectancy Tables Are Without Merit

This paper has three parts. The first considers the various methods used by economic experts to measure worklife expectancy for purposes of determining damages for loss of earning capacity in personal injury cases or loss of financial support in wrongful death actions. Based on surveys of members of the National Association of Forensic Economics, the predominant method is use of Markov process statistical work-life expectancy tables, with the LPE method as a distant second, and use of a fixed retirement date as a close third and median or mean years to final labor force separation a distant fourth. The primary focus of this paper is on a comparison of Markov process approach and the LPE approach, with an explanation of the advantages and disadvantages of each method. The second part deals with the issues posed by worklife expectancy and disability. The second part will provide suggestions for how an economic expert can assist a jury in dealing with the possibility that permanent disability may shorten the period over which a worker in residual employment will have a reduced worklife. The third and shortest part of the paper will deal with why the Gamboa-Gibson LPE based disability work-life expectancy tables are without merit and should not be used.