The paper develops a sequential migration model and derives a worker's optimal policies for migration and employment. With the worker's simulated reservation wage functions for employment and migration, a stationary equilibrium is defined. In that equilibrium, stationary distributions of...

This paper provides a labour supply explanation to the observation that in Germany employment changes are asymmetric during the business cycle. Employment increases are slower, because the reservation wage of workers increases in times of job uncertainty. Workers are afraid in those periods of...

This paper provides new empirical evidence on the relationship between reservation wages of unemployed workers and macroeconomic factors – including aggregate and local unemployment rates, generosity of the unemployment compensation system and characteristics of the wage structure – as well...

Due to labor market reforms in Germany some years ago, the incentives to work changed. The paper analyzes the effects on the reservation wages for specific groups. It is assumed that reservation wages are determined by the replacement rates implied by the system of unemployment benefits and by...

This paper extends previous research about the determinants of reservation wages by analysing the effect of progressive income taxation on the ratio between reservation and net market wages. Based on micro data for Germany (SOEP) we show that joint income taxation in Germany which discriminates...

This study examines the relationship between individual risk aversion and reservation wages using a novel set of direct measures of individual risk attitudes from the German Socio-Economic Panel (SOEP). We find that risk aversion has a significantly negative impact on the level of reservation...

This paper is based on recently collected and rich survey data of a representative sample of entrants into unemployment in Germany. Our data include a large number of migration variables, allowing us to adapt a recently developed concept of ethnic identity: the ethnosizer. To shed further light...

This paper is based on recently collected and rich survey data of a representative sample of entrants into unemployment in Germany. Our data include a large number of migration variables, allowing us to adapt a recently developed concept of ethnic identity: the ethnosizer. To shed further light...