Reservation wages and labor supply

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Standard

Reservation wages and labor supply. / Kesternich, Iris; Schumacher, Heiner; Siflinger, Bettina; Valder, Franziska.

In: Journal of Economic Behavior & Organization, Vol. 194, 2022, p. 583-607.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Kesternich, I, Schumacher, H, Siflinger, B & Valder, F 2022, 'Reservation wages and labor supply', Journal of Economic Behavior & Organization, vol. 194, pp. 583-607. https://doi.org/10.1016/j.jebo.2021.12.031

APA

Kesternich, I., Schumacher, H., Siflinger, B., & Valder, F. (2022). Reservation wages and labor supply. Journal of Economic Behavior & Organization, 194, 583-607. https://doi.org/10.1016/j.jebo.2021.12.031

Vancouver

Kesternich I, Schumacher H, Siflinger B, Valder F. Reservation wages and labor supply. Journal of Economic Behavior & Organization. 2022;194:583-607. https://doi.org/10.1016/j.jebo.2021.12.031

Author

Kesternich, Iris ; Schumacher, Heiner ; Siflinger, Bettina ; Valder, Franziska. / Reservation wages and labor supply. In: Journal of Economic Behavior & Organization. 2022 ; Vol. 194. pp. 583-607.

Bibtex

@article{90a7d6e10e02459a89ec60f1ab9dbd4c,
title = "Reservation wages and labor supply",
abstract = "Survey measures of the reservation wage may reflect both the consumption-leisure trade-off and job market prospects (the arrival rate of job offers and the wage distribution). We examine what a survey measure of the reservation wage reveals about an individual{\textquoteright}s willingness to trade leisure for consumption. To this end, we combine the reservation wage measure from a large labor market survey with the reservation wage for a one-hour job that we elicit in an online experiment. The two measures show a strong positive association. For unemployed individuals, the experimental reservation wage increases on average by around one Euro for every Euro increase in the survey measure. For employed individuals, the association between the two measures is weaker and depends on their occupation-specific risk of unemployment. We show that these results are robust to selection into the experiment, and that demographic variables have a similar influence on both reservation wage measures.",
keywords = "Faculty of Social Sciences, Labor supply Search Validation of survey measures",
author = "Iris Kesternich and Heiner Schumacher and Bettina Siflinger and Franziska Valder",
year = "2022",
doi = "10.1016/j.jebo.2021.12.031",
language = "English",
volume = "194",
pages = "583--607",
journal = "Journal of Economic Behavior & Organization",
issn = "0167-2681",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Reservation wages and labor supply

AU - Kesternich, Iris

AU - Schumacher, Heiner

AU - Siflinger, Bettina

AU - Valder, Franziska

PY - 2022

Y1 - 2022

N2 - Survey measures of the reservation wage may reflect both the consumption-leisure trade-off and job market prospects (the arrival rate of job offers and the wage distribution). We examine what a survey measure of the reservation wage reveals about an individual’s willingness to trade leisure for consumption. To this end, we combine the reservation wage measure from a large labor market survey with the reservation wage for a one-hour job that we elicit in an online experiment. The two measures show a strong positive association. For unemployed individuals, the experimental reservation wage increases on average by around one Euro for every Euro increase in the survey measure. For employed individuals, the association between the two measures is weaker and depends on their occupation-specific risk of unemployment. We show that these results are robust to selection into the experiment, and that demographic variables have a similar influence on both reservation wage measures.

AB - Survey measures of the reservation wage may reflect both the consumption-leisure trade-off and job market prospects (the arrival rate of job offers and the wage distribution). We examine what a survey measure of the reservation wage reveals about an individual’s willingness to trade leisure for consumption. To this end, we combine the reservation wage measure from a large labor market survey with the reservation wage for a one-hour job that we elicit in an online experiment. The two measures show a strong positive association. For unemployed individuals, the experimental reservation wage increases on average by around one Euro for every Euro increase in the survey measure. For employed individuals, the association between the two measures is weaker and depends on their occupation-specific risk of unemployment. We show that these results are robust to selection into the experiment, and that demographic variables have a similar influence on both reservation wage measures.

KW - Faculty of Social Sciences

KW - Labor supply Search Validation of survey measures

U2 - 10.1016/j.jebo.2021.12.031

DO - 10.1016/j.jebo.2021.12.031

M3 - Journal article

VL - 194

SP - 583

EP - 607

JO - Journal of Economic Behavior & Organization

JF - Journal of Economic Behavior & Organization

SN - 0167-2681

ER -

ID: 321821941