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Author
M. Lammers
Year
2014
Title
The effects of savings on reservation wages and search effort
Journal
Labour Economics
Volume
27
Pages (from-to)
83-98
Document type
Article
Faculty
Faculty of Economics and Business (FEB)
Institute
Amsterdam School of Economics Research Institute (ASE-RI)
Abstract
This paper discusses the interrelations among wealth, reservation wages and search effort. A theoretical job search model predicts wealth to affect reservation wages positively, and search effort negatively. Subsequently, reduced form equations for reservation wages and search intensity take these theoretical results to the data. The data used is a Dutch panel, containing detailed information on individual wealth and income, subjective reservation wages and proxies for search effort. The main empirical results show that wealth has a significantly positive effect on reservation wages of both household heads and spouses, and a significantly negative effect on the search effort of household heads.
URL
go to publisher's site
Language
English
Permalink
http://hdl.handle.net/11245/1.431654

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