Wage aspirations and unemployment persistence

Hogan, Vincent

doi:10.1016/j.jmoneco.2004.02.002

Cited by 30 publications

(22 citation statements)

References 13 publications

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“…Individuals holding out for offers that will not come remain on the unemployment insurance roles for inefficiently long periods. Of particular concern is the possibility that individuals will set their reservation wage at the level of wages they have received on past jobs, whether or not this is realistic given prevailing labor market conditions (Feldstein and Poterba 1984;Ball and Moffitt 2001;Hogan 2004). Moreover, individuals might be loss averse in the sense of having preferences that are asymmetric around their previous wage with a particularly large psychological cost to taking a job paying below their past earnings.…”

Section: Reform Proposal: Implement Some Form Of Wage Loss Insurancementioning

confidence: 99%

Notes on behavioral economics and labor market policy

et al. 2012

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Labor market policies succeed or fail at least in part depending on how well they reflect or account for behavioral responses. Insights from behavioral economics, which allow for realistic deviations from standard economic assumptions about behavior, have consequences for the design and functioning of labor market policies. We review key implications of behavioral economics related to procrastination, difficulties in dealing with complexity, and potentially biased labor market expectations for the design of selected labor market policies including unemployment compensation, employment services and job search assistance, and job training.Keywords: Behavioral economics, Unemployment insurance, Job training, Job search JEL: D03, D04, J08, J24, J64, J65 Background and motivationThe Great Recession of 2007 to 2009 and its aftermath have been a trying period for American workers. The U.S. unemployment rate reached double digits in late 2009 for the first time in over a quarter of a century and has remained over 8 percent through mid-2012. Real compensation growth has all but stalled. The human costs of labor market turbulence have rarely been clearer, and the value of public policies, such as unemployment insurance and job training programs, that assist workers in managing that turbulence, gaining new skills, and navigating the labor market have rarely been more apparent. Similar problems of persistent joblessness have been apparent in most major economies in recent years.Even in the best of times, the United States' labor market is a dynamic and turbulent one with high rates of turnover (over five million separations and five million new hires in a typical month in normal times) but substantial frictions as well. As a result, labor market programs and regulations are key components of economic policy. Such policies help support the unemployed, provide education and training opportunities, and ensure the fairness, safety, and accessibility of the workplace. The challenge for policymakers in the United States and elsewhere is to design such policies so that they meet these goals as effectively and as efficiently as possible.Labor market policies succeed in meeting their objectives, however, only to the extent that they accurately account for how individuals actually make decisions about work and leisure, job search, and education and training. To a substantial extent such

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Section: Reform Proposal: Implement Some Form Of Wage Loss Insurancementioning

confidence: 99%

Notes on behavioral economics and labor market policy

et al. 2012

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“…Other studies focus on the impacts of wealth (Bloemen and Stancanelli, 2001), previous wages (Hogan, 2004), demographics such as age, race, gender, or education (Holzer, 1986;Petterson, 1997Petterson, , 1998, health (Brown, Roberts, and Taylor, 2010), search costs (Jones, 1989), local economic conditions (Haurin and Sridhar, 2003), labor market scale (Petrongolo and Pissarides, 2006), or social assistance payments (Alexopoulos and Gladden, 2004;Mitra, 2007;Gorter and Gorter, 1993;Della Vigna and Paserman, 2005).…”

Section: Literature Review: Theory Of Job Searchmentioning

confidence: 99%

Helping Soldiers Leverage Army Knowledge, Skills, and Abilities in Civilian Jobs

Wenger¹,

Pint²,

Piquado³

et al. 2017

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This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial use. For information on reprint and linking permissions, please visit www.rand.org/pubs/permissions.The RAND Corporation is a research organization that develops solutions to public policy challenges to help make communities throughout the world safer and more secure, healthier and more prosperous. RAND is nonprofit, nonpartisan, and committed to the public interest.RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. For more information on this publication, visit www.rand.org/t/RR1719Published by the RAND Corporation, Santa Monica, Calif. © Copyright 2017 RAND CorporationR® is a registered trademark. Cover photo by Staff Sgt. Joe Armas/U.S. Army iii PrefaceThis report documents one of the primary tasks of a research project titled "Facilitating AC-to-RC and AC-to-Civilian Transitions." The overall purpose of the project was to assess the level and importance of the knowledge, skills, and abilities needed to perform in Army military occupational specialties (MOSs) to develop improved crosswalks between military and civilian occupations and to make other recommendations to improve the transition process for soldiers leaving the Regular Army.In this report, we discuss the results of occupation surveys administered to soldiers in ten of the most populous Army MOSs, including the knowledge, skills, and abilities rated most important by soldiers in those MOSs, the best-matching civilian occupations, and comparisons with other military-civilian occupation crosswalks.

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“…Several recent studies have empirically analysed the determinants of reservation wages, e.g. Christensen (2001) and Prasad (2003) for Germany or Hogan (2004) for the UK.…”

Section: Introductionmentioning

confidence: 99%

“…As we do not observe W it we follow Hogan (2004) and estimateŴ it , a measure of the mean of the distribution of offered wages. We apply a selection corrected wage estimation following Heckman (1974) and interpret the predicted hourly wages of the currently unemployed individuals as the mean of the distribution of offered wages.…”

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confidence: 99%

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The impact of income taxation on the ratio between reservation and market wages and the incentives for labour supply

Caliendo¹,

Gambaro²,

Haan³

2009

Applied Economics Letters

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may DIW BerlinLudovica Gambaro ‡ LSE LondonPeter Haan § DIW BerlinAbstract This paper extends previous research about the determinants of reservation wages by analysing the effect of progressive income taxation on the ratio between reservation and net market wages. Based on micro data for Germany (SOEP) we show that joint income taxation in Germany which discriminates by marital status, has a strong and highly significant impact on the reservation/market wage ratio. Relative to single filers, this leads to strong negative labour supply incentives for secondary earners and to positive incentives for first earners in married couples.

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Wage aspirations and unemployment persistence

Cited by 30 publications

References 13 publications

Notes on behavioral economics and labor market policy

Notes on behavioral economics and labor market policy

Helping Soldiers Leverage Army Knowledge, Skills, and Abilities in Civilian Jobs

The impact of income taxation on the ratio between reservation and market wages and the incentives for labour supply

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