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Do Reservation Wages Really Decline? Some International Evidence on the Determinants of Reservation Wages

  • John Addison

    ()

  • Mário Centeno
  • Pedro Portugal

Using cross-country data, we investigate the determinants of reservation wages and their course over the jobless spell. Higher unemployment benefits lead to higher reservation wages. Further, again consistent with the basic search model, repeated observations on the same individual provide scant evidence of declining reservation wages.

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File URL: http://hdl.handle.net/10.1007/s12122-008-9057-y
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Article provided by Springer in its journal Journal of Labor Research.

Volume (Year): 30 (2009)
Issue (Month): 1 (March)
Pages: 1-8

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Handle: RePEc:spr:jlabre:v:30:y:2009:i:1:p:1-8
Contact details of provider: Web page: http://www.springer.com/economics/journal/12122

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  1. repec:spo:wpecon:info:hdl:2441/9704 is not listed on IDEAS
  2. Prasad, Eswar, 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).
  3. John T. Addison & M�Rio Centeno & Pedro Portugal, 2010. "Unemployment Benefits and Reservation Wages: Key Elasticities from a Stripped-Down Job Search Approach," Economica, London School of Economics and Political Science, vol. 77(305), pages 46-59, 01.
  4. Bloemen, H.G. & Stancanelli, E.G.F., 1997. "Individual Wealth, Reservation Wages and Transitions into Employment," Discussion Paper 1997-02, Tilburg University, Center for Economic Research.
  5. Dale T. Mortensen, 1977. "Unemployment insurance and job search decisions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(4), pages 505-517, July.
  6. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366, March.
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