Do Reservation Wages Really Decline? Some International Evidence on the Determinants of Reservation Wages

John Addison (), Mário Centeno () and Pedro Portugal
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Mário Centeno: Banco de Portugal

No 3289, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: Using cross-country data, we investigate the determinants of reservation wages and their course over the jobless spell. Higher unemployment benefits lead to higher reservation wages. Further, again consistent with the basic search model, repeated observations on the same individual provide scant evidence of declining reservation wages.

Keywords: reservation wages; probability of reemployment; arrival rate of job offers; unemployment benefits (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-lab
Date: Written 2008-01
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Working Paper: Do Reservation Wages Really Decline?: Some International Evidence on the Determinants of Reservation Wages (2008)
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