Reservation wages and labor supply

Survey measures of the reservation wage may reflect both consumption-leisure trade-off and job market prospects (the arrival rate offers distribution). We examine what a survey measure reveals about an individual’s willingness to trade leisure for consumption. To this end, we combine from large labor with one-hour that elicit in online experiment. The two show strong positive association. For unemployed individuals, experimental increases on average by around one Euro every increase measure. employed association between is weaker depends their occupation-specific risk unemployment. these results are robust selection into experiment, demographic variables have similar influence measures.