Table 1.

Summary of parameterization for demographics, preferences, skill dynamics and trend parameters. The model period is one month.

Parameter	Description	Value
A	maximum age (months)	360
β	discount factor	${0.90}^{1/12}$
λ	search cost	0.2
μϕ,67	mean of the value of log leisure	−0.999
μs,67	initial level of median log wage	0
γs = γϕ	growth rate of log wage/leisure	0.000284
ρ	autoregressive parameter for log skills	${0.95}^{1/12}$
δ+	rate of learning by doing	0.00491
δ−	earnings loss upon displacement	0.0647
vε	variance of skill shocks	0.00888
${\sigma }_{67}^2$	initial variance of log wages	0.337
γσ	rate of skill-biased technical change	0.000379