Title:
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Unemployment duration and workers' wage aspirations in Spain
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Author:
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Ahn, Namkee; García-Pérez, José Ignacio
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Other authors:
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Universitat Pompeu Fabra. Departament d'Economia i Empresa |
Abstract:
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This paper examines unemployed workers' declared willingness to work
for a wage lower than the one warranted by their qualification. We
analyze which personal and economic characteristics determine this
willingness and how it changes as unemployment spells lengthen.
Moreover, we also study the influence of this willingness on
unemployment duration. The main results are: (i) Young workers,
those less educated and those living in regions with high
unemployment show a more positive attitude towards accepting lower
wages while married women with a working husband show more negative
attitudes; (ii) The exhaustion of unemployment benefits has
positive effects in the transition probability of the attitude from
negative to positive; (iii) The effect of this attitude on the
unemployment hazard rate is positive but only marginally significant
which may be showing that this willingness is not only reflecting
the worker's reservation wage but also some unobserved
heterogeneity; (iv) The negative duration dependence of the
unemployment hazard rate is substantially reduced when unobserved
heterogeneity is controlled for. |
Subject(s):
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-willingness to work for lower wages -reservation wage -unemployment duration -unobserved heterogeneity -Labour, Public, Development and Health Economics |
Rights:
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L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
http://creativecommons.org/licenses/by-nc-nd/3.0/es/ |
Document type:
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Working Paper |
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