Unemployment duration and workers' wage aspirations in Spain

Namkee Ahn () and José Ignacio García-Pérez ()
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José Ignacio García-Pérez: FEDEA, Jorge Juan 46, 28001 Madrid, Spain Universitat Pompeu Fabra, Department of Economics and Business, C/ Ramón Trias Fargas 25-27, 08005 Barcelona, Spain
Authors registered in the RePEc Author Service: J. Ignacio García Pérez ()

Spanish Economic Review, 2002, vol. 4, issue 2, 103-118

Abstract: This paper examines unemployed workers' declared willingness to work for wages lower than the one adequate for their qualification. We analyze which personal and economic characteristics determine this willingness and how it changes along the individuals' unemployment spells. The main results are: (i) Young workers, less educated and those living in regions or times of high unemployment are more willing to accept reduced wages while married women with a working husband are much less willing to do so; (ii) Once the individual fixed effect is controlled for, the willingness to work for reduced wages increases with the duration of unemployment; (iii) Not having access to unemployment benefits increases the probability that initially unwilling workers become willing to accept reduced wages.

Keywords: Willingness to work for lower wages; reservation wage; unemployment duration; unobserved heterogeneity (search for similar items in EconPapers)
JEL-codes: C41 J64 (search for similar items in EconPapers)
Date: 2002-07-24
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Citations: View citations in EconPapers (9)

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