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...

This paper estimates the welfare and distributional impact of two types of welfare reform in the 15 (pre-enlargement) member countries of the European Union. The reforms are revenue neutral and financed by an overall and uniform increase in marginal tax rates on earnings. The first reform...

Interpretation of the phenomenon of graduate overeducation remains problematical. In an attempt to resolve at least some of the issues this paper makes use of the panel element of the HILDA survey, distinguishing between four possible combinations of education/skills mismatch. For men we find a...

A thorny problem in identifying the determinants of reservation wages and particularly the role of continued joblessness in their evolution is the simultaneity issue. We deploy a natural control function approach to the problem that involves conditioning elapsed duration on completed...

The interpretation of graduate mismatch manifested either as overeducation or as overskilling remains problematical. This paper uses annual panel information on both educational and skills mismatches uniquely found in the HILDA survey to analyse the relationship of both mismatches with pay, job...

This paper explores how the diversity of minimum wage systems affects earnings inequalities within European countries. It relies on the combination of (a) harmonized micro-data from household surveys, (b) data on national statutory minimum wages and coverage rates, and (c) hand-collected...