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2. B Data appendix We use micro-data files from the Current Population Survey (CPS) to construct the life-cycle profiles that we then feed into the model. The data come from different extracts of the CPS and cover the past 20 years: • To measure worker productivity, we pool data from the 1995-2015 Outgoing Rotation Group samples of the CPS. As in Hansen [1993], we define labor efficiency units as the 20 25 30 35 40 45 50 55 60 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 (a) Worker productivity 20 25 30 35 40 45 50 55 60 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 (b) Job separation 20 25 30 35 40 45 50 55 60 (c) Job tenure Age dummies Smoothed
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