Individual wealth, reservation wages, and transitions into employment

• 成果类型: Article; Proceedings Paper
• 署名作者: Bloemen, HG; Stancanelli, EGF
• 署名单位: Tilburg University; Organisation for Economic Co-operation & Development (OECD)
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/319566
• 发表日期: 2001
• 页码: 400-439
• 关键词: labor-market transitions; job search theory; Unemployment duration; instruments; weak

摘要

We investigate the relationship between financial wealth, reservation wages, and labor market transitions. Wealth is assumed to affect the level of the reservation wage and the employment probability. We test for the validity of this assumption by estimating a simultaneous-equations model of reservation wages, labor market transitions, and wealth. The data used for the analysis relate to a sample of unemployed job searchers. We use subjective information on the reservation wage. Wealth is found to have a significantly positive impact on the reservation wage. The overall impact of wealth on the employment probability is negative though small.