Working paper ISER Working Paper Series

The association between reported and calculated reservation wages

Publication details

Series
ISER Working Paper Series
Series number
2002-07
Publication date

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.

Notes

working paper