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Black-White Differences in Reservation Wages and Joblessness: A Replication

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  • Stephen M. Petterson

Abstract

Examining self-reported reservation wages from the 1979-80 waves of the National Longitudinal Survey of Youth (NLSY), Holzer concludes that 26 to 42 percent of the race difference in the length of jobless spells is due to the higher wages sought by young Black men. This replication uses NLSY reservation wage data from 1979 through 1986. Although I find a Black-White difference in reservation wages, I fail to find a positive effect of these measures on the duration of jobless spells. Thus, evidence from the NLSY does not support the claim that reservation wage differences explain the race employment gap.

Suggested Citation

  • Stephen M. Petterson, 1998. "Black-White Differences in Reservation Wages and Joblessness: A Replication," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 758-770.
  • Handle: RePEc:uwp:jhriss:v:33:y:1998:i:3:p:758-770
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    Cited by:

    1. Koenig, Felix & Manning, Alan & Petrongolo, Barbara, 2014. "Reservation wages and the wage flexibility puzzle," LSE Research Online Documents on Economics 60613, London School of Economics and Political Science, LSE Library.
    2. Mark Stater & Jeffrey B Wenger, 2017. "The Immediate Hardship of Unemployment: Evidence from the US Unemployment Insurance System," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(1), pages 17-36, January.
    3. repec:cep:cepdps:dp1319 is not listed on IDEAS
    4. Keith A. Bender & John Douglas Satun, 2009. "Constrained By Hours And Restricted In Wages: The Quality Of Matches In The Labor Market," Economic Inquiry, Western Economic Association International, vol. 47(3), pages 512-529, July.
    5. 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.
    6. Robert Wagmiller, 2007. "Race and the spatial segregation of jobless men in urban America," Demography, Springer;Population Association of America (PAA), vol. 44(3), pages 539-562, August.

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