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Exploring the link between employment search time and reservation

Author

Listed:
  • 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.

Suggested Citation

  • María Angeles Davia & Oscar D. Marcenaro Gutiérrez, 2008. "Exploring the link between employment search time and reservation," Hacienda Pública Española, IEF, vol. 186(3), pages 91-121, October.
  • Handle: RePEc:hpe:journl:y:2008:v:186:i:3:p:91-121
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    References listed on IDEAS

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    More about this item

    Keywords

    Transitions into work; unemployment benefits; reservation wages; earnings.;

    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, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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