Table 11:

Calibrated Parameters

Parameter	Value	Description
A. Outside the Model
β	0.996	Discount factor
bD	0.9μD	Value of home production, disabled (90% of average productivity)
bND	0.75μND	Value of home production, non-disabled (75% of average productivity)
𝜂	0.5	Nash-bargaining parameter of worker
B. Within the Model
κ	8.257	Vacancy-posting cost
γ	0.981	Elasticity of p (𝜃) w.r.t. market tightness θ
δ	0.006	Exogenous job destruction rate
𝜙D	0.013	Probability of redrawing productivity, disabled
𝜙ND	0.078	Probability of redrawing productivity, non-disabled
μD	1.000	Average productivity, disabled (normalization)
μND	1.923	Average productivity, non-disabled
${\sigma }_z^2$	0.231	Variance of productivity distribution
CF,D	12.963	Firing cost of the disabled under the ADA
CH,D	0.828	Hiring cost of the disabled under the ADA

Note: Table 11 reports the values of the calibrated parameters. Part A reports parameters calibrated a priori, and part B reports the parameters calibrated within the model jointly to match the benchmark economy (without policy) and the changes in the equilibrium transition rates between the benchmark economy and the economy under the ADA.