Blackaby, David H. Latreille, Paul L. Murphy, Philip D. O'Leary, Nigel C. Sloane, Peter J.
Year of Publication:
IZA Discussion Papers No. 1980
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.