Reservation Wages: Explaining Some Puzzling Regional Patterns
We use the Italian Labour Force Survey and the European Household Panel Survey to analyse the distribution of the reservation wages reported by jobseekers. In Italy, reservation wages appear to be higher in the South - the low income and high unemployment area of the country - than in the North and Centre. A similar, rather counterintuitive, pattern, however, can also be found in Finland, France and Spain. First, we show that the way in which these data are commonly collected generates double selection bias. Second, we show that this bias has a strong effect on the estimation of the geographical pattern of reservation wages in many countries. The size of this bias is substantial in Italy. When controlling for it, reservation wages are 10 per cent higher in the North and Centre than in the South.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 25 (2011)
Issue (Month): 1 (03)
|Contact details of provider:|| Postal: Via Columbia, 2 00133 Roma|
Phone: 0039 06 2040234
Fax: 0039 06 2020687
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1121-7081
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=1121-7081|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Albert Alesina & Stephan Danninger & Massimo Rostagno, 2001.
"Redistribution Through Public Employment: The Case of Italy,"
IMF Staff Papers,
Palgrave Macmillan, vol. 48(3), pages 2.
- Alberto Alesina & Stephan Danninger & Massimo Rostagno, 1999. "Redistribution Through Public Employment: The Case of Italy," NBER Working Papers 7387, National Bureau of Economic Research, Inc.
- Stephan Danninger & Alberto Alesina & Massimo V. Rostagno, 1999. "Redistribution Through Public Employment; The Case of Italy," IMF Working Papers 99/177, International Monetary Fund.
- Boeri, Tito & Garibaldi, Pietro, 2002.
"Shadow Activity and Unemployment in a Depressed Labour Market,"
CEPR Discussion Papers
3433, C.E.P.R. Discussion Papers.
- Tito Boeri & Pietro Garibaldi, . "Shadow Activity and Unemployment in a Depressed Labor Market," Working Papers 177, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Ugo Trivellato & Anna Giraldo, 2006.
"Assessing the 'Choosiness' of Job-seekers. An Exploratory Approach and Evidence for Italy,"
CEIS, vol. 20(1), pages 1-36, 03.
- Ugo Trivellato & Anna Giraldo, 2003. "Assessing the "Choosiness" of Job Seekers. An Exploratory Approach and Evidence for Italy," CESifo Working Paper Series 925, CESifo Group Munich.
- BÃ¶heim, RenÃ©, 2002. "The association between reported and calculated reservation wages," ISER Working Paper Series 2002-07, Institute for Social and Economic Research.
- John T. Addison & Mário Centeno & Pedro Portugal, 2004.
"Reservation Wages, Search Duration, and Accepted Wages in Europe,"
w200413, Banco de Portugal, Economics and Research Department.
- Addison, John T. & Centeno, Mario & Portugal, Pedro, 2004. "Reservation Wages, Search Duration, and Accepted Wages in Europe," IZA Discussion Papers 1252, Institute for the Study of Labor (IZA).
- Harry J. Holzer, 1986. "Reservation Wages and Their Labor Market Effects for Black and White Male Youth," Journal of Human Resources, University of Wisconsin Press, vol. 21(2), pages 157-177.
- Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
When requesting a correction, please mention this item's handle: RePEc:bla:labour:v:25:y:2011:i:1:p:63-88. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.