Reservation wages, expected wages and unemployment

Article English OPEN
Brown, S ; Taylor, K (2013)
  • Publisher: Elsevier
  • Journal: Economics Letters, volume 119, issue 3, pages 276-279 (issn: 0165-1765)
  • Related identifiers: doi: 10.1016/j.econlet.2013.02.035
  • Subject: Economics and Econometrics | Finance

We model unemployment duration, reservation and expected wages simultaneously for individuals not in work, where wage expectations are identified via an exogenous policy shock. The policy shock increased expected wages, which were found to be positively associated with reservation wages.
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