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Title:The Determinants of Reservation Wages in Germany Does a Motivation Gap Exist? PDF Logo
Authors:Christensen, Björn
Issue Date:2001
Series/Report no.:Kieler Arbeitspapiere 1024
Abstract:This paper investigates the reservation wages of unemployed persons on the basis of a job-search model with non-static reservation wages using panel data from Germany from 1987 to 1998. The results suggest that reservation wages are relatively high in Germany compared to other countries. Furthermore, pooled regression results show that most recent wages and personal characteristics of the unemployed are the most important determinants of reservation wages. In contrast neither unemployment duration nor different kinds of unemployment benefits influence reservation wages. Hence the findings corroborate the hypothesis that unemployed persons are not subject to strong financial pressure and thus have no significant motivation to find a new job.
Subjects:Pooled Regression
Unemployment
Labour Supply
Reservation Wages
JEL:C23
J64
J22
E24
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

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