Table 2 Chronological overview of previous studies on reservation wages
Study: author | Data: country, source, years | Reservation wages variables, methods | Findings |
|---|---|---|---|
Kiefer and Neumann (1979) | USA, Survey, 1969–1973 | Reservation Wages weekly, Maximum-Likelihood | Reservation Wages decline over Duration of Unemployment. |
Gordon and Blinder (1980) | USA, LRHS, 1969–1973 | Reservation Wages hourly (calculated), OLS | Reservation Wages increase with Age and bad Health, decline with Marriage, mixed Effects for Children (Sample: only Men). |
Franz (1982) | Germany, Unemployment Register, 1976 | Reservation Wages monthly, OLS | Unemployment Compensations increase over Duration of Unemployment. |
Feldstein and Poterba (1984) | USA, Current Population Survey, May 1976 | Reservation Wages monthly, OLS | Unemployment Insurances increase Duration of Unemployment. |
Maani and Studenmund (1986) | Chile, Survey, 1981–1982 | Reservation Wages monthly, OLS, 2SLS | Reservation Wages decline over Duration of Unemployment (Sample: only Men). |
Jones (1989) | Great Britain, Economist Intelligence Unit, 1982 | Reservation Wages monthly, OLS | Last Wages influence Reservation Wages positive. Higher Reservation Wages for Men, especially for Husbands. |
Schmidt and Winkelmann (1993) | Germany, Federal Secretary of Labor, 1978 | Reservation Wages monthly, OLS | Reservation Wages decline with Duration of Unemployment. Higher Reservation Wages for Men. No Significance for Age. |
Gorter and Gorter (1993) | Netherlands, SEP, 1985–1987 | Reservation Wages monthly, OLS, 2SLS | Reservation Wages increase with Age and educational Level. |
Bloemen and Stancanelli (2001) | Netherlands, SEP, 1987–1990 | Reservation Wages monthly/hourly, OLS, IV | Inverse u-shaped Effect of Age on Reservation Wages. Wealth increase Reservation Wages. |
Prasad (2001) | Germany, GSOEP, 1984–1997 | Reservation Wages monthly, OLS | Inverse u-shaped Effect of Age on Reservation Wages. Marriage and Children lower Reservation Wages. |
Prasad (2004) | Germany, GSOEP, 1984–1997 | Reservation Wages monthly, OLS | Higher Reservation Wages for married Men. Children increase only Men’s Reservation Wages. |
Christensen (2005) | Germany, GSOEP, 1984–2000 | Reservation Wages monthly, OLS, IV | Reservation Wages constant over Duration of Unemployment. Reservation Wages higher than last Market Wages. |
Addison et al. (2009) | 13 European Countries, ECHP, 1994–1999 | Reservation Wages hourly, RE, FE | Reservation Wages constant with Duration of Unemployment. Unemployment Benefits increase Reservation Wages. |
Brown et al. (2010) | Great Britain, BHPS, 1991–2004 | Reservation Wages, hourly, OLS | Reservation Wages and Market Wages increase with Age, decline after Age 55. No Effect of Health on Reservation Wages (Sample: only Men). |
Pannenberg (2010) | Germany, GSOEP, 2004–2006 | Reservation Wages monthly, OLS, FE | Risk Aversion lower Reservation Wages. Reservation Wages lower with Duration of Unemployment. |
Brown et al. (2011) | Great Britain, BHPS, 1991–2007 | Reservation Wages hourly, Oaxaca Decomposition | Reservation Wages is higher for Men. Reservation Wages lower with Duration of Unemployment. |
Krueger and Mueller (2011) | USA (New Jersey), Survey, 24 weeks in 2009–2010 | Reservation Wages hourly, OLS, probit | Reservation Wages increase with Age, decline after Age 50. Reservation Wages close to last Market Wages. Amount of Job Search Time decline over Unemployment Duration. |