This paper provides evidence on the behavior of reservation wages over the spell of unemployment using high … to 24 weeks, we find that self‐reported reservation wages decline at a modest rate over the spell of unemployment, with … point estimates ranging from 0.05 to 0.14 percent per week of unemployment. The decline in reservation wages is driven …

in reservation wages of approximately 4 percent at the low end of the distribution. The shifts in reservation wages and … observed wages due to the minimum wage reform are comparable in their magnitude. Additional results show that German citizens … adjust their reservation wages more than immigrants. Moreover, suggestive evidence points to a compensation mechanism in …

Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment … rather than wages, at odds with the quantitative predictions of the canonical search model – even if wages are only … reservation wages, and consider an alternative reservation wage model based on reference dependence in job search. This extension …