Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/120640
Authors: 
Blien, Uwe
Messmann, Susanne
Trappmann, Mark
Year of Publication: 
2012
Series/Report no.: 
52nd Congress of the European Regional Science Association: "Regions in Motion - Breaking the Path", 21-25 August 2012, Bratislava, Slovakia
Abstract: 
Reservation wages indicate the wage threshold for which individual workers are inclined to supply their working capacity. In important theoretical approaches it is assumed that this threshold depends on the unemployment rate. If this is true, the variation of reservation wages might be an important force behind the regional 'wage curve', which has been estimated in many empirical studies. Up to now, the connection to reservation wages has not been tested, since research are rather limited, since they depend on the availability of survey data. With the 'Labour Market and Social Security' study (PASS), a new large panel survey in Germany, information on re-gional reservation wages is available. PASS provides many variables usually expected to determine wages, such as gender, age, qualification etc. The data available therefore provides an excellent opportunity to test the relationship between unemployment and reservations wages. The analysis opens up the 'black box' of the wage generation process and delivers insights about its determining factors. J31, C20, R10 wage curve, reservation wage, regional labour markets
Document Type: 
Conference Paper

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