¹⁷Also note that the probability of transitioning from employment to unemployment is the probability of a job separation times the conditional probability of unemployment given a job separation. Mincer (1991) reports that both of these are lower for higher education levels. For our calibration, this means that a higher job finding rate within the quarter of the job separation for more educated workers translates into a lower probability of transitioning from employment to unemployment during a quarter. In that sense, our calibration is consistent with short-term job-finding rates being higher for more educated workers.