Model Calibration
| Parameter | Symbol | Calibrated Value |
|---|---|---|
| Mean, male log earnings | μm | 10.350 |
| SD, male log earnings | σm | 0.750 |
| Mean, female log potential earnings | μf | 10.160 |
| SD, female log potential earnings | σm | 0.700 |
| Mean, disutility of work | ψ | 0.002 |
| SD, disutility of work | σψ | 0.001 |
| Earnings-disutility correlation, females | ρ | −0.400 |
| SD, transitory earnings shock (1,000s) | σu | 13.000 |
| Targets in the Data | Data | Model |
| Mean, male log earnings | 10.350 | 10.350 |
| SD, male log earnings | 0.750 | 0.750 |
| Mean, female log earnings | 10.000 | 9.980 |
| SD, female log earnings | 0.870 | 0.870 |
| Gender earnings ratio, all | 0.740 | 0.710 |
| Gender earnings ratio, full-timers only | 0.800 | 0.790 |
| Labor force-participation rate, females | 0.880 | 0.910 |
| Full-time employment rate, females | 0.670 | 0.670 |
Notes: Calibration of model discussed in Section IV.B.