Unemployment benefits and reservation wages: key elasticities from a stripped-down job search approach

John T. Addison, Mario Centeno, Pedro Portugal

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

This paper exploits survey information on reservation wages and data on actual wages from the European Community Household Panel to deduce, in the manner of Lancaster and Chesher, additional parameters of a stylized structural search model; specifically, reservation wage and transition/duration elasticities. The informational requirements of this approach are minimal, thereby facilitating comparisons between countries. Further, its policy content is immediate in so far as the impact of unemployment benefit rules and measures increasing the arrival rate of job offers are concerned. These key elasticities are computed for the United Kingdom and 11 other European nations.

Original languageEnglish
Pages (from-to)46-59
Number of pages14
JournalEconomica
Volume77
Issue number305
DOIs
Publication statusPublished - 1 Jan 2010

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