An analysis of reservation wages for the economically inactive

Blackaby, David H.; Latreille, Paul L.; Murphy, Philip D.; O'Leary, Nigel C.; Sloane, Peter J.

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33347

Title:

An analysis of reservation wages for the economically inactive

Authors:

Blackaby, David H.
Latreille, Paul L.
Murphy, Philip D.
O'Leary, Nigel C.
Sloane, Peter J.

Year of Publication:

2006

Series/Report no.:

IZA Discussion Papers No. 1980

Publisher:

Institute for the Study of Labor (IZA), Bonn

Abstract:

This paper uses unique data for the economically inactive to calculate elasticity estimates of the reservation wage and exit probability with respect to state benefits and the arrival rate of job offers, and finds that the inactive react in similar ways to benefit increases as the unemployed.

Subjects:

economic inactivity
reservation wages

JEL:

J21
J22
J31

Document Type:

Working Paper

Appears in Collections:

IZA Discussion Papers, IZA – Institute of Labor Economics

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