model for occupational
choice in which the occupation that maximizes earnings
is chosen. Estimation of the Roy model is not always trivial, but
our model has enough structure to identify the parameters. In particular,
one can correct for individual heterogeneity and observe
individuals switching from one regime to another which, combined
with the model structure, allows inference of the counterfactuals
(what health would be in the regime that is not the actual regime).
Estimation of the model then will be a generalization of a switching
regression method