Préférences temporelles et recherche d'emploi « Applications économétriques sur le panel Européen des Ménages »
The rate of time preference is an important component of decisions, such as the choice of reservation wage or search effort. More impatient workers search less intensively and set a lower reservation wage. The effect on the exit rate from unemployment is unclear. According to the model of Della Vigna and Paserman , time preferences are separate in exponential and hyperbolic preferences. If agents have hyperbolic preferences, the search effort dominates reservation wage, so increase in impatience lead to lower exit rate. Using the French sample of European Household Panel Survey (EHPS), we prove that search effort has a strong effect on the exit rate from unemployment whereas reservation wage is not significant. This final result informs us that the individuals have hyperbolic preferences.
|Date of creation:||2008|
|Date of revision:|
|Publication status:||Published in Working Paper GATE 2008-24. 2008|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00333531|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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