Can a search model predict the effects of an increase in the benefit duration? Evidence from the Portuguese unemployment insurance reform

Table 4 Parameters

		15–24	30–34	40–44
b	Unemployment benefit	0.77	0.70	0.68
κ	Probability of eligibility	0.08	0.24	0.36
ψ	Persistence of eligibility, before the reform	0.38	0.13	0.33
	after the reform	0.53	0.36	0.52
ρ	Persistence of z	0.99095	0.99420	0.99524
σ ²	Variance of z×100	1.246	0.565	0.4355
w ^h	Domestic productivity	1.404	0.7357	0.7759
α	Labor share	0.7	0.7	0.7
β	Intertemporal discount	0.99024	0.98058	0.98058

b in model periods of wages. Model period: 3 months for the group 15–24 and 6 months for the other groups. w ^h for γ=1; the other parameters do not depend on γ