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.
ASJC Scopus subject areas
- Management of Technology and Innovation
- Organizational Behavior and Human Resource Management
- Strategy and Management
Addison, J., Centeno, M., & Portugal, P. (2009). Do Reservation Wages Really Decline? Some International Evidence on the Determinants of Reservation Wages. Journal of Labor Research, 30(1), 1-8. https://doi.org/10.1007/s12122-008-9057-y