Skip to main content

Table 1 Level and volatility of transition probabilities

From: The importance of frequency in estimating labour market transition rates

  Monthly Quarterly Continuous
  Original Extrapolated Original Extrapolated Corrected Corrected
  n m \({\hat {n}_{m}}\) n q \({\hat {n}_{q}}\) \({\hat {\lambda }_{m}}\) \({\hat {\lambda }_{q}}\)
Mean
E → U 0.015 0.010 0.023 0.027 0.020 0.012
E → I 0.029 0.015 0.046 0.086 0.358 0.213
U → E 0.260 0.178 0.383 0.460 0.028 0.015
U → I 0.221 0.120 0.259 0.376 0.312 0.145
I → E 0.046 0.023 0.070 0.139 0.044 0.022
I → U 0.026 0.013 0.027 0.044 0.036 0.015
Volatility
E → U 0.0025 0.0018 0.0046 0.0058 0.0029 0.0020
E → I 0.0026 0.0014 0.0039 0.0070 0.0728 0.0408
U → E 0.0405 0.0295 0.0486 0.0456 0.0028 0.0014
U → I 0.0240 0.0158 0.0248 0.0230 0.0481 0.0223
I → E 0.0040 0.0020 0.0059 0.0110 0.0039 0.0020
I → U 0.0035 0.0016 0.0045 0.0085 0.0037 0.0017
  1. Note: Average transition rates and standard deviation from 1976:2 to 2011:6. n m and n q are the matrices calculated directly from CPS. \(\hat {n}_{m}\) and \(\hat {n}_{q}\) are calculated using equations ( 1 ) and ( 2). \(\hat {\lambda }_{m}\) and \(\hat {\lambda }_{q}\) are the continuous transition rates calculated using equations ( 3 ) and ( 4 ).