A Comment on “Employee Tenure and Economic Losses in Wrongful Termination Cases”

Abstract In the April 2013 issue of the Journal of Forensic Economics, Charles L. Baum II develops a model to estimate the annual probability of a worker remaining with a particular employer and applies his results to estimates of economic losses resulting from wrongful termination. Baum's adjustment for job survival is based only on forecast experience in the job held at the time of the termination. This method seems inconsistent with Baum's own findings that early years in any job are associated with much higher hazard rates. In this comment we apply Baum's survival coefficients in a model that incorporates the probability of termination and survival in both the original job and the replacement job.