Self-employment in an equilibrium model of the labor market

Table 2 Transition matrix: 2004–2008

	Unemployment	Small paid	Large paid	Own-account	Recruiter
		employment	employment
Unemployment	–	0.0009	0.0899	0.0066	0.0019
Paid employment (s)	0.0160	0.0160	0.0841	0.0053	0.0027
Paid employment (l)	0.0034	0.0002	0.0079	0.0009	0.0000
Own-account	0.0011	0.0000	0.0056	–	0.0027
Recruiter	0.0007	0.0000	0.0043	0.0108	–

Transition rates are (continuous time) monthly. Rows do not add up to one. The entries along the diagonal are the fractions of individuals changing jobs within their current labor market status. Large paid employment is defined as being employed in an establishment that has 25 or more employees. Rates in bold are ones in which the model is able to replicate