The Reservation Wage Curve: Evidence from the UK

11 Pages Posted: 11 Oct 2014

See all articles by Sarah Brown

Sarah Brown

University of Sheffield - Department of Economics; IZA Institute of Labor Economics

Karl Taylor

University of Sheffield - Department of Economics

Abstract

We investigate the relationship between an individuals' reservation wage, i.e. the lowest wage acceptable in order to enter into employment, and unemployment in the local area district. Largely unexplored in the literature this adds to the work which has examined the association between employee wages and unemployment – the 'wage curve'.

Keywords: reservation wages, wage curve, unemployment

JEL Classification: J64, J31, R23

Suggested Citation

Brown, Sarah and Taylor, Karl B., The Reservation Wage Curve: Evidence from the UK. IZA Discussion Paper No. 8519. Available at SSRN: https://ssrn.com/abstract=2508574

Sarah Brown (Contact Author)

University of Sheffield - Department of Economics

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Karl B. Taylor

University of Sheffield - Department of Economics ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

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