IDEAS home Printed from https://ideas.repec.org/p/fda/fdaddt/99-20.html
   My bibliography  Save this paper

Unemployment duration and workers' wage aspirations in Spain

Author

Listed:
  • Namkee Ahn
  • J. Ignacio Garcí-Pérez

Abstract

This paper examines unemployed workers' declared willingness to accept a job with a wage lower than the one warranted by their qualification. We analyze which personal and economic characteristics determine this willingness and how it changes as unemployment spells lengthen. Moreover, we also study the influence of this willingness on unemployment duration. The main results are: (i) Young workers, those less educated and those living in regions with high unemployment rates show a more positive attitude towards accepting lower wages while the college educated and married women with a working husband show substantially more negative attitudes; (ii) The exhaustion of unemployment benefits indeed shows significant positive effects in the transition probability of the attitude from negative to positive. This effect is even larger when unobserved heterogeneity is controlled for; (iii) Regarding the effects of this attitude on the exit probability from unemployment, we find that the expressed willingness to work for lower wages is not only reflecting the worker's reservation wage but also some unobserved heterogeneity; (iv) The negative duration dependence of the exit probability from unemployment is substantially reduced when unobserved heterogeneity is controlled for.

Suggested Citation

  • Namkee Ahn & J. Ignacio Garcí-Pérez, "undated". "Unemployment duration and workers' wage aspirations in Spain," Working Papers 99-20, FEDEA.
  • Handle: RePEc:fda:fdaddt:99-20
    as

    Download full text from publisher

    File URL: http://documentos.fedea.net/pubs/dt/1999/dt-1999-20.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Fredriksson & Bertil Holmlund, 2006. "Improving Incentives in Unemployment Insurance: A Review of Recent Research," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 357-386, July.
    2. repec:pri:cepsud:158krueger is not listed on IDEAS
    3. Anders Forslund & Alan Krueger, 2010. "Did Active Labor Market Policies Help Sweden Rebound from the Depression of the Early 1990s?," NBER Chapters,in: Reforming the Welfare State: Recovery and Beyond in Sweden, pages 159-187 National Bureau of Economic Research, Inc.
    4. Ayala, Luis & Rodriguez, Magdalena, 2007. "Barriers to employment and welfare dynamics: Evidence from Spain," Journal of Policy Modeling, Elsevier, vol. 29(2), pages 237-257.
    5. Jacobo de Uña Álvarez & Gema Álvarez Llorente & Mª Soledad Otero Giráldez, 2004. "Estimation of time spent in unemployment for married women: An application at regional level," Working Papers 0410, Universidade de Vigo, Departamento de Economía Aplicada.

    More about this item

    Keywords

    Reservation wage ; unemployment duration ; unobserved heterogeneity;

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:99-20. 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: (Carmen Arias). General contact details of provider: http://www.fedea.net .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.