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Reservation wages in Estonia

Author

Listed:
  • Marit Rõõm

    (Bank of Estonia)

Abstract

This paper analyses the factors determining reservation wages in Estonia, and estimates the influence of the reservation wage on unemployment duration. According to estimations there is no statistically significant effect of unemployment benefit and social assistance on the reservation wage in Estonia. While evidence was found, that the higher the reservation wage, the lower the probability of finding a job, if all other things are equal. It was also found that the eligibility of unemployment benefit or social assistance increases the duration of the unemployment period, which indicates the lower offer arrival rate in the case of unemployed receiving assistance, which might be caused by a lower search intensity.

Suggested Citation

  • Marit Rõõm, 2003. "Reservation wages in Estonia," Labor and Demography 0303001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0303001
    Note: Type of Document - Acrobat PDF; pages: 18
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/0303/0303001.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    reservation wage; unemployment duration; unemployment insurance; transition economy;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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