An Analysis of Reservation Wages for the Economically Inactive

This paper uses unique data for the economically inactive to calculate elasticity estimates of the reservation wage and exit probability with respect to state benefits and the arrival rate of job offers, and finds that the inactive react in similar ways to benefit increases as the unemployed.

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Year of publication:	2006-02
Authors:	Blackaby, David H. ; Latreille, Paul L. ; Murphy, Philip D. ; O'Leary, Nigel ; Sloane, Peter J.
Institutions:	Institute for the Study of Labor (IZA)
Subject:	economic inactivity \| reservation wages

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 1980 11 pages
Classification:	J21 - Labor Force and Employment, Size, and Structure ; J22 - Time Allocation and Labor Supply ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005703662