-static reservation wages using panel data from Germany from 1987 to 1998. The results suggest that reservation wages are relatively high … in Germany compared to other countries. Furthermore, pooled regression results show that most recent wages and personal … characteristics of the unemployed are the most important determinants of reservation wages. In contrast neither unemployment duration …

This paper studies the reservation wages of unemployed persons and the wages offered them in Germany from 1987 to 1998 …, whereby special focus is placed on unemployment duration. The results of the study indicate that in contrast to reservation … wages, offered wages decline considerably with duration of unemployment. This is the main reason that ratios of reservation …