Reservation Wages, Search Duration, and Accepted Wages in Europe
نویسندگان
چکیده
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 duration and age; that reservation wages do decline with the jobless spell (and aggregate unemployment); that transitions out of unemployment exhibit strong negative duration dependence for reasons that have more to do with the arrival rate of job offers than with reservation wages; and that the decline in reemployment wages with joblessness closely shadows the corresponding fall in reservation wages. JEL Classification: J64, J65
منابع مشابه
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...
متن کاملReal-Time Search in the Laboratory and the Market
While widely accepted models of labor market search imply a constant reservation wage policy, the empirical evidence strongly suggests that reservation wages decline in search duration. This paper reports the results of the rst realtime-search laboratory experiment. The controlled environment subjects face is stationary, and the payoff-maximizing reservation wage is constant. Nevertheless, subj...
متن کاملAn Equilibrium Theory of Declining Reservation Wages and Learning an Equilibrium Theory of Declining Reservation Wages and Learning *
In this paper we consider learning from search as a mechanism to understand the relationship between unemployment duration and search outcomes as a labor market equilibrium. We rely on the assumption that workers do not have precise knowledge of their job finding probabilities and therefore, learn about them from their search histories. Embedding this assumption in a model of the labor market w...
متن کاملDo 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 ...
متن کاملThe association between reported and calculated reservation wages
Do reported reservation wages correspond to the concept of reservation wages that economists have? Using panel data on British unemployed I calculate reservation wages from a search model and compare these with reported reservation wages. It is shown that men’s reported reservation wages are greater than what the model predicts, and that for women there is hardly a relation between the two vari...
متن کامل