What do jobseekers want? Comparing methods to estimate reservation wages and the value of job attributes

Brian Feld, AbdelRahman Nagy and Adam Osman

Journal of Development Economics, 2022, vol. 159, issue C

Abstract: Understanding jobseeker preferences – including their reservation wages and how much they value different non-wage amenities – is difficult because they are not directly observable. We test four different methods for estimating these preference parameters using an experiment in a job-matching center. We find large and important differences between the methods. Using a follow up survey for validation, and comparing the consistency of estimates with prior literature, we find that Discrete Choice Experiments perform best. We show how these methods can improve our understanding of labor market frictions and help policymakers and employers develop targeted policies and compensation bundles to address inequities in the labor market.

Keywords: Measurement; Reservation wages; Gender; Job attributes; Randomized experiment (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:159:y:2022:i:c:s0304387822001201

DOI: 10.1016/j.jdeveco.2022.102978

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