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Exploring the link between employment search time and reservation

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Author Info
María Angeles Davia () (Universidad Castilla-La Mancha)
Oscar D. Marcenaro Gutiérrez () (Universidad de Málaga)
Abstract

In our piece of work we are facing a two-fold problem: on the one hand, we study the behaviour of young job seekers and the extent to which reservation wages and unemployment benefits play a relevant role in the transition into working life. On the other hand, we intend to find out whether the determinants of the job search process may also affect subsequent wages. We undertake an empirical approach combining one-step estimations with two-step instrumental variables techniques. The data used to this end come from the European Community Household Panel (ECHP) for the period 1995-2001. To be precise, the sub-sample gathers both male and female Southern European (Italian, Greek, Spanish and Portuguese) workers. From the results of the analysis important subtleties arise, particularly related to differences across countries.

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Publisher Info
Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 186 (2008)
Issue (Month): 3 (October)
Pages: 91-121
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Handle: RePEc:hpe:journl:y:2008:v:186:i:3:p:91-121

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Related research
Keywords: Transitions into work; unemployment benefits; reservation wages; earnings.;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
Y - Miscellaneous Categories
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

References listed on IDEAS
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  1. van den Berg, Gerard J & Gorter, Cees, 1997. "Job Search and Commuting Time," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 269-81, April.
    Other versions:
  2. Cheti Nicoletti & Franco Peracchi & Vincenzo Atella, 2005. "Survey Response and Survey Characteristics: Micro-level Evidence from the European Commission Household Panel," CEIS Research Paper 64, Tor Vergata University, CEIS. [Downloadable!]
  3. Hui, Weng-Tat, 1991. "Reservation Wage Analysis of Unemployed Youths in Australia," Applied Economics, Taylor and Francis Journals, vol. 23(8), pages 1341-50, August.
  4. Jensen, Peter & Westergard-Nielsen, Niels C, 1987. "A Search Model Applied to the Transition from Education to Work," Review of Economic Studies, Blackwell Publishing, vol. 54(3), pages 461-72, July. [Downloadable!] (restricted)
  5. van den Berg, Gerard J, 1990. "Nonstationarity in Job Search Theory," Review of Economic Studies, Blackwell Publishing, vol. 57(2), pages 255-77, April. [Downloadable!] (restricted)
  6. Boeri, Tito & Conde-Ruiz, José Ignacio & Galasso, Vincenzo, 2004. "Cross-Skill Redistribution and the Trade-Off Between Unemployment Benefits and Employment Protection," CEPR Discussion Papers 4711, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Peter Dolton & Gerald Makepeace & Oscar Marcenaro-Gutierrez, 2005. "Career progression: Getting-on, getting-by and going nowhere," Education Economics, Taylor and Francis Journals, vol. 13(2), pages 237-255, June. [Downloadable!] (restricted)
    Other versions:
  8. Lancaster, Tony, 1985. "Simultaneous equations models in applied search theory," Journal of Econometrics, Elsevier, vol. 28(1), pages 113-126, April. [Downloadable!] (restricted)
  9. Torelli, Nicola & Trivellato, Ugo, 1993. "Modelling inaccuracies in job-search duration data," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 187-211, September. [Downloadable!] (restricted)
  10. Chiuri Maria Concetta & Del Boca Daniela, 2007. "Living arrangements in Europe: exploring gender differences and institutional characteristics," Department of Economics Working Papers 200709, University of Turin. [Downloadable!]
    Other versions:
  11. Marimon, Ramon & Zilibotti, Fabrizio, 1999. "Employment and Distributional Effects of Restricting Working Time," CEPR Discussion Papers 2127, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  12. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-56, July. [Downloadable!] (restricted)
  13. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90. [Downloadable!] (restricted)
  14. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December. [Downloadable!] (restricted)
  15. Narendranathan, W & Nickell, S & Stern, J, 1985. "Unemployment Benefits Revisited," Economic Journal, Royal Economic Society, vol. 95(378), pages 307-29, June. [Downloadable!] (restricted)
  16. Bloemen, Hans G & Stancanelli, Elena G F, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 400-439, April. [Downloadable!] (restricted)
    Other versions:
  17. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-76, November. [Downloadable!] (restricted)
  18. Albert E. Rees & Wayne B. Gray, 1979. "Family Effects in Youth Employment," NBER Working Papers 0396, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  19. Donald R. Haurin & Kala S. Sridhar, 2003. "The impact of local unemployment rates on reservation wages and the duration of search for a job," Applied Economics, Taylor and Francis Journals, vol. 35(13), pages 1469-1476, September. [Downloadable!] (restricted)
  20. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
    Other versions:
  21. Prasad, Eswar S., 2003. "What Determines the Reservation Wages of Unemployed Workers? New Evidence from German Micro Data," IZA Discussion Papers 694, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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