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An analysis of reservation wages for the economically inactive

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Author Info

  • Blackaby, D.H.
  • Latreille, P.L.
  • Murphy, P.D.
  • O'Leary, N.C.
  • Sloane, P.J.

Abstract

This paper uses unique data for the economically inactive to calculate elasticity estimates of the reservation wage and exit probability with respect to state benefits and the arrival rate of job offers, and finds that the inactive react in similar ways to benefit increases as the unemployed.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4P18B35-2/2/848d108dfe4695ec6675a113b89d1199
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 97 (2007)
Issue (Month): 1 (October)
Pages: 1-5

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Handle: RePEc:eee:ecolet:v:97:y:2007:i:1:p:1-5

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References

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  1. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-76, November.
  2. Mortensen, Dale T., 1987. "Job search and labor market analysis," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 15, pages 849-919 Elsevier.
  3. Narendranathan, Wiji & Nickell, Stephen, 1985. "Modelling the process of job search," Journal of Econometrics, Elsevier, vol. 28(1), pages 29-49, April.
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Citations

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Cited by:
  1. Sarah Brown & Karl Taylor, 2008. "Expectations, Reservation Wages And Employment: Evidence From British Panel Data," Working Papers 2008007, The University of Sheffield, Department of Economics, revised May 2008.
  2. Sarah Brown & Jenny Roberts & Karl Taylor, 2008. "Reservation Wages, Labour Market Participation And Health," Working Papers 2008002, The University of Sheffield, Department of Economics, revised Feb 2008.
  3. Brown, Sarah & Roberts, Jennifer & Taylor, Karl, 2011. "The gender reservation wage gap: Evidence from British Panel data," Economics Letters, Elsevier, vol. 113(1), pages 88-91, October.
  4. Mariusz Kaszubowski & Joanna Wolszczak-Derlacz, 2014. "Salary and reservation wage gender gaps in Polish academia," GUT FME Working Paper Series A 19, Faculty of Management and Economics, Gdansk University of Technology.
  5. Sarah Brown & Karl Taylor, 2008. "Reservation Wages, Expected Wages and Labour Market Outcomes: Analysis of Individual Level Panel Data," Working Papers 2008008, The University of Sheffield, Department of Economics, revised Jul 2008.
  6. DIOP-CHRISTENSEN Anna, 2012. "Beating the "unemployable" with a stick: The effect of economic incentives on unemployed immigrants and their social welfare workers," CEPS/INSTEAD Working Paper Series 2012-30, CEPS/INSTEAD.
  7. Brown, Sarah & Taylor, Karl, 2013. "Reservation wages, expected wages and unemployment," Economics Letters, Elsevier, vol. 119(3), pages 276-279.
  8. Brown, Sarah & Taylor, Karl, 2011. "Reservation wages, market wages and unemployment: Analysis of individual level panel data," Economic Modelling, Elsevier, vol. 28(3), pages 1317-1327, May.

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