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Reservation Wages and the Cost of Unemployment

Bibliographic Data

ID9723946
AuthorsStephen R G Jones, Stephen R Jones (0000-0003-0491-4881, corresponding author)
Year1989
Volume56
Issue222
Pages225
Publication date1989-05-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherJSTOR (PUBLISHER)
DOI10.2307/2554041
OpenAlexW2023108498
LanguageEN
Citations received5
References cited16

This paper studies direct evidence on reservation wages reported in Great Britain in 1982 to assess (1) whether such asking prices are "high" and (2) whether variations in these reservation wages are related to differences in measures of the subjective and objective costs of unemployment. A majority overall (and for various subgroups) reports reservation wages no higher than own past wages adjusted for earnings growth, but there is nonetheless considerable dispersion in the ratio of reservation to past wages. Reservation wages are somewhat related to measures of the differential cost of unemployment, most clearly for men, although the independent role of benefits is often imprecisely measured. However, exactly which of these costs matter differs significantly according to whether the separation from last employment was voluntary or involuntary. Copyright 1989 by The London School of Economics and Political Science

Demographic economics · Differential (mechanical device) · Earnings · Economics · Efficiency wage · Labour economics · Macroeconomics · Reservation · Reservation wage · Unemployment · Wage · Finance · Housing Market and Economics · Housing, Finance, and Neoliberalism · Labor market dynamics and wage inequality

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Unique citing works5
Citations per year0,15
Citation span1992 - 2023 (32)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 3
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