An Analysis of Reservation Wages for the Economically Inactive

David H. Blackaby (), Paul Latreille, Philip D. Murphy (), Nigel C. O'Leary () and Peter J. Sloane ()
Additional contact information
David H. Blackaby: Swansea University
Philip D. Murphy: Swansea University
Nigel C. O'Leary: Swansea University
Peter J. Sloane: Swansea University

No 1980, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper uses unique data for the economically inactive to calculate elasticity estimates of the reservation wage and exit probability with respect to state benefits and the arrival rate of job offers, and finds that the inactive react in similar ways to benefit increases as the unemployed.

Keywords: reservation wages; economic inactivity (search for similar items in EconPapers)
JEL-codes: J21 J22 J31 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2006-02
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (1)

Published - published in: Economics Letters, 2007, 97 (1), 1-5

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Journal Article: An analysis of reservation wages for the economically inactive (2007)
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