A social network for economists in the academia and the business world.

Román Culebro Martínez's Blog – March 2014 Archive (1)

UNEMPLOYMENT INSURANCE AND RESERVATION WAGES By Feldstein & Poterba

The present paper examines the reservation wages reported by a large sample of unemployed individuals in the United States in May 1976. The majority of unemployed individuals report reservation wages´ that are at least as high as the wage they paid on their last job. Approximately one-fourth of all job seekers required a wage that is at least 10 percent higher than the wage on their previous job. Our econometric evidence shows that level of unemployment benefits relative to previous wages…

Continue

Added by Román Culebro Martínez on March 19, 2014 at 7:25pm — No Comments