Do Reservation Wages Really Decline? Some International Evidence on the Determinants of Reservation Wages

Using cross-country data, we investigate the determinants of reservation wages and their course over the jobless spell. Higher unemployment benefits lead to higher reservation wages. Further, again consistent with the basic search model, repeated observations on the same individual provide scant evidence of declining reservation wages.

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Year of publication:	2008-01
Authors:	Addison, John T. ; Centeno, Mário ; Portugal, Pedro
Institutions:	Institute for the Study of Labor (IZA)
Subject:	arrival rate of job offers \| unemployment benefits \| reservation wages \| probability of reemployment

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	forthcoming in: Journal of Labor Research Number 3289
Classification:	J64 - Unemployment: Models, Duration, Incidence, and Job Search ; J65 - Unemployment Insurance; Severance Pay; Plant Closings
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005763873