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

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 ).

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