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Table 2 Values assigned to unobservable parameter in the benchmark economy

From: Fostering job search among older workers: the case for pension reform

Preferences

Labor Market parameters

β

0.97

Annual discount factor

λ 0

0.6

Base job-offer arrival rate

η

2

Risk aversion

λ h

0.5

Factor reduction in λ due to h>1

\(\bar {l}\)

0.3

Leisure AVI (Retirement)

λ a

0.8

Factor reduction in λ due to a>59

l S

0.0

Leisure AVI (search)

μ

9.7

Wage offer mean (thousands of 2002 euros)

   

σ

8.9

Wage offer dispersion (std)

  1. AVI added value of income