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Böheim, R. (2002): The association between reported and calculated reservation wages. Collaborative Research Center 386, Discussion Paper 273 [PDF, 393kB]

Abstract

Do reported reservation wages correspond to the concept of reservation wages that economists have? Using panel data on British unemployed I calculate reservation wages from a search model and compare these with reported reservation wages. It is shown that men's reported reservation wages are greater than what the model predicts, and that for women there is hardly a relation between the two variables.

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