Job finding rate in Search and matching model

General DSGE Modeling Replication Attempts
1

Hello everyone,

I am working on a New Keynesian model with search and matching friction in the labor market. I would like to calibrate the model using US data and I found in a paper that the monthly probability of finding a job is 56.30%. However, my model is specified in quarters and not monthly.

Now I am confused about how to target the job finding variable in the model. Can anyone suggest how to aggregate monthly rates in quarterly?

Thank you all for your help

2

You can use the information of quarterly data statistics if it is available for the US economy.

3

I would say if you have a probability of finding a job in every month of p=0.563 then the probability of finding a job in any of the subsequent months is

p+(1-p)p+(1-p)^2p=0.9165

That is, it’s the sum of probabilities of finding a job after not having found a job before.