Reservation wages, market wages and unemployment: Analysis of individual level panel data

C-Tier
Journal: Economic Modeling
Year: 2011
Volume: 28
Issue: 3
Pages: 1317-1327

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using individual level panel data, we analyse the divergence between the reservation wages of individuals who are out of work and their predicted market wages, focusing upon identifying the factors that influence the potential divergence. In addition, using propensity score matching techniques, we explore the implications of such divergences for future employment and wages. Our findings suggest that having reservation wages that are high relative to the predicted market wage influence both future employment and future wages.

Technical Details

RePEc Handle
repec:eee:ecmode:v:28:y:2011:i:3:p:1317-1327
Journal Field
General
Author Count
2
Added to Database
2026-01-24