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Exploring the link between employment search time and reservation wages in Southern Europe

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Abstract

In our piece of work we are facing a two-fold problem: on the one hand, we study the behaviour of 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.

Suggested Citation

  • María A. Davia & Óscar D. Marcenaro-Gutiérrez, 2007. "Exploring the link between employment search time and reservation wages in Southern Europe," Economic Working Papers at Centro de Estudios Andaluces E2007/13, Centro de Estudios Andaluces.
    • Handle: RePEc:cea:doctra:e2007_13
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    File URL: http://www.centrodeestudiosandaluces.info/PDFS/E200713.pdf
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    1. 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.
    2. James M. Poterba, 1984. "The Citizens Utilities Case: A Further Dividend Puzzle," Working papers 340, Massachusetts Institute of Technology (MIT), Department of Economics.
    3. Machin, Stephen & Manning, Alan, 1999. "The causes and consequences of longterm unemployment in Europe," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 47, pages 3085-3139, Elsevier.
    4. 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.
    5. Peter Dolton & Gerald Makepeace & Oscar Marcenaro-Gutierrez, 2005. "Career progression: Getting-on, getting-by and going nowhere," Education Economics, Taylor & Francis Journals, vol. 13(2), pages 237-255.
    6. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-1676, November.
    7. Tito Boeri & J. Ignacio Conde-Ruiz & Vincenzo Galasso, "undated". "Cross-skill Redistribution and the Tradeoff between Unemployment Benefits and Employment Protection," Working Papers 2004-26, FEDEA.
    8. Peter Jensen & Niels C. Westergård-Nielsen, 1987. "A Search Model Applied to the Transition from Education to Work," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 461-472.
    9. Lancaster, Tony, 1985. "Simultaneous equations models in applied search theory," Journal of Econometrics, Elsevier, vol. 28(1), pages 113-126, April.
    10. 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.
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    12. Donald Haurin & Kala Sridhar, 2003. "The impact of local unemployment rates on reservation wages and the duration of search for a job," Applied Economics, Taylor & Francis Journals, vol. 35(13), pages 1469-1476.
    13. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
    14. Marimon, Ramon & Zilibotti, Fabrizio, 2000. "Employment and distributional effects of restricting working time," European Economic Review, Elsevier, vol. 44(7), pages 1291-1326, June.
    15. Mr. Eswar S Prasad, 2003. "What Determines the Reservation Wages of Unemployed Workers? New Evidence From German Micro Data," IMF Working Papers 2003/004, International Monetary Fund.
    16. Gorter, Dirk & Gorter, Cees, 1993. "The Relation between Unemployment Benefits, the Reservation Wage and Search Duration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(2), pages 199-214, May.
    17. Nicoletti, Cheti & Peracchi, Franco, 2004. "Survey response and survey characteristics: Micro-level evidence from the ECHP," Economics & Statistics Discussion Papers esdp04015, University of Molise, Department of Economics.
    18. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
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    Cited by:

    1. Nordlund, Madelende & Strandh, Mattias, 2014. "The relation between economic and non-economic incentives to work and employment chances among the unemployed," Working Paper Series 2014:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    Keywords

    transiciones laborales; prestaciones por desempleo; salarios de reserva; ganancias; earnings; transitions into work; unemployment benefits; reservation wages.;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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