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

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

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 ...

On the Reservation Wages and Liquidity Constraint

This paper argues that a risk averse of workers after-tax reservation wage the difference between her reservation wage and the tax needed to fund the unemployment insurance system when liquidity constraint binds exists and it is unique. The optimality of unemployment insurance based on the responsiveness of reservation wage to unemployment benefit shows the disincentive effect, i.e. higher unem...

on the reservation wages and liquidity constraint

this paper argues that a risk averse of workers after-tax reservation wage the difference between her reservation wage and the tax needed to fund the unemployment insurance system when liquidity constraint binds exists and it is unique. the optimality of unemployment insurance based on the responsiveness of reservation wage to unemployment benefit shows the disincentive effect, i.e. higher unem...

The Dynamics of Reservation Wages: Preliminary Evidence from the GSOEP

Reservation Wages, Search Duration, and Accepted Wages in Europe

Reservation Wages, Search Duration, and Accepted Wages in Europe This paper uses data from the European Community Household Panel, 1994-99, to investigate the arrival rate of job offers, the determinants of reservation wages, transitions out of unemployment, and accepted wages. In this exploratory treatment, we report that the arrival rate of job offers declines precipitously with jobless durat...