Assumptions: 1.L is exogenously fixed. 2.During any given month, s fraction of employed workers that become separated from their jobs, f=fraction of unemployed workers that find jobs. s rate of job separations f=rate of job finding (both exogenous) CHAPTER 6 Unemployment slide 6slide 6 1. L is exogenously fixed. 2. During any given month, s = fraction of employed workers that become separated from their jobs, f = fraction of unemployed workers that find jobs. s = rate of job separations f = rate of job finding (both exogenous) 1