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The Determinants and Consequences of Unemployed Workers’ Wage Demands

Author

Listed:
  • Eriksson, Stefan

    (Department of Economics)

  • Lagerström, Jonas

    (Åbo Akademi University)

Abstract

This paper studies the determinants and labor market consequences of unemployed workers’ wage demands using direct data on the workers’ actual wage requests. Our results show that most workers want a wage close to what they earned in their previous jobs, and thus much more than they get in unemployment benefits. However, our results also show that some groups, such as women, tend to systematically demand lower wages. Also, we find that workers with high wage demands are contacted by firms less often than otherwise similar workers with lower wage demands. Thus our results indicate that too high wage demands may contribute to high unemployment.

Suggested Citation

  • Eriksson, Stefan & Lagerström, Jonas, 2010. "The Determinants and Consequences of Unemployed Workers’ Wage Demands," Working Paper Series 2010:26, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:2010_026
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    References listed on IDEAS

    as
    1. Säve-Söderbergh, Jenny, 2007. "Are Women Asking for Low Wages? Gender Differences in Wage Bargaining Strategies and Ensuing Bargaining Success," Working Paper Series 7/2007, Stockholm University, Swedish Institute for Social Research.
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    Cited by:

    1. Nordlund, Madelende & Strandh, Mattias, 2014. "The relation between economic and non-economic incentives to work and employment chances among the unemployed," Working Paper Series 2014:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    Keywords

    Unemployment; Job Search; Wage Demands; Gender Differences;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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