Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265980 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 9945
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Occupational prestige or job status may induce people to remain unemployed even when jobs are available. Thus measured unemployment will always have a voluntary component. Accumulated wealth in a family tends to increase the opportunity cost of job search, more so in a world where job status is socially important. Thus prosperity and unemployment may go hand in hand independent of the standard income effect. The paper shows that measured unemployment always may have a voluntary component. In fact an increase in reservation wage increases voluntary unemployment. However, the impact on the level in involuntary unemployment of such an increase cannot be easily predicted.
Subjects: 
occupational prestige
reservation wage
ability to work
unemployment
JEL: 
J24
J28
J33
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.