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The Dynamics of Reservation Wages: Preliminary Evidence from the GSOEP

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  • Enswar Prasad

Abstract

This paper presents preliminary results from an empirical analysis of the individual and macroeconomic deter-minants of reservation wages, using data from the German Socio-Economic Panel. The longitudinal aspect of the dataset provides an interesting perspective on the dynamics of reservation wages and their correlations with accepted wage offers for workers who make the transition from unemployment to employment. The findings have important policy implications as well, since they shed some light on the disincentive effects of the German tax and transfer system for the labor supply and employment decisions of unemployed workers at different points of the skill/offer wage distribution.

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File URL: http://ejournals.duncker-humblot.de/doi/pdf/10.3790/vjh.70.1.44
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Bibliographic Info

Article provided by DIW Berlin, German Institute for Economic Research in its journal Vierteljahrshefte zur Wirtschaftsforschung.

Volume (Year): 70 (2001)
Issue (Month): 1 ()
Pages: 44-50

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Handle: RePEc:diw:diwvjh:70-10-7

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  1. repec:iab:iabmit:v:36:i:4:p:573-598 is not listed on IDEAS
  2. Christensen, Björn, 2003. "Anspruchslohn und Arbeitslosigkeit in Deutschland (Reservation wage and unemployment in Germany)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 573-598.
  3. Björn Christensen, 2003. "Die Validität erfragter Reservationslöhne: ein Test auf Basis der stationären Suchtheorie," Kiel Working Papers 1151, Kiel Institute for the World Economy.
  4. Björn Christensen, 2003. "Selektionsverzerrungen, erfragte Reservationslöhne und Arbeitslosigkeitsdauer," Kiel Working Papers 1162, Kiel Institute for the World Economy.
  5. Björn Christensen, 2002. "Reservation Wages, Offered Wages, and Unemployment Duration � New Empirical Evidence," Kiel Working Papers 1095, Kiel Institute for the World Economy.
  6. Christensen, Björn, 2001. "Mismatch-Arbeitslosigkeit unter Geringqualifizierten (Mismatch-unemployment among the low-skilled)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 34(4), pages 506-514.
  7. Humpert, Stephan & Pfeifer, Christian, 2013. "Explaining age and gender differences in employment rates : a labor supply side perspective," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(1), pages 1-17.
  8. repec:iab:iabmit:v:34:i:4:p:506-514 is not listed on IDEAS

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