Economics Social Network

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

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 has a powerful effect on the individual´s reservation wage.  These estimates imply that reducing net unemployment insurance benefits could significantly lower the average duration of unemployment and the relative number of long duration spells of unemployment.

(Dale click al enlace de abajo para acceder al paper)

unemployment_insurance.pdf

Views: 112

Comment

You need to be a member of Economics Social Network to add comments!

Join Economics Social Network

© 2024   Created by Dr. T.   Powered by

Report an Issue  |  Terms of Service