Table 3.

Parameters of the job losing and job finding probabilities. The $\stackrel{ˆ}{}$ symbol denotes external estimates based on CPS data. The other parameter values are calibrated internally.

Job Losing	$f_U(s_{it})={\gamma }_0[1-{(1+\frac{{\gamma }_1}{y_t(s_{it})})}^{{}^{-\frac{1}{{\gamma }_2}}}]$
		γ0 = 0.481	${\hat{\gamma }}_1=0.254$	${\hat{\gamma }}_2=12.97$
Job Finding	$f_E(s_{it},Z_t)={\eta }_0(Z_t){(1+\frac{{\eta }_1}{y_t(s_{it})})}^{-\frac{1}{{\eta }_2}}$
			${\hat{\eta }}_1=0.0351$	${\hat{\eta }}_2=0.509$
Calibrated shifters
	η0(B)=0.564	η0(X)=0.345	η0(R)=0.227	η0(C)=0.136