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

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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.
Original languageUnknown
Pages (from-to)1-8
JournalJournal Of Labor Research
Volume30
Issue number1
DOIs
Publication statusPublished - 1 Jan 2009

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