The effects of savings on reservation wages and search effort

Autor: Marloes Lammers
Přispěvatelé: Economics, SEO Economisch Onderzoek
Jazyk: angličtina
Rok vydání: 2014
Předmět:
Zdroj: Labour Economics, 27, 83-98. Elsevier
Lammers, M 2014, ' The effects of savings on reservation wages and search effort ', Labour Economics, vol. 27, pp. 83-98 . https://doi.org/10.1016/j.labeco.2014.03.001
ISSN: 0927-5371
Popis: This paper discusses the interrelations among wealth, reservation wages and search effort. A theoretical job search model predicts wealth to affect reservation wages positively, and search effort negatively. Moreover, the model shows that reservation wages have a negative effect on search effort, thereby also predicting an indirect negative effect of wealth on search intensity. A simultaneous-equation model for wealth, reservation wages and search intensity takes these theoretical results to the data. The data used is a Dutch panel, containing detailed information on, individual wealth and income, subjective reservation wages and proxies for search effort. The main empirical results show that wealth has a significantly positive effect on reservation wages, though it has no significant effect on search effort. Since reservation wages do have a significant negative impact on search effort, the wealth-effect on search effort only takes place indirectly, via an increased reservation wage.
Databáze: OpenAIRE
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