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Unemployment insurance and reservation wages

Unemployment insurance and reservation wages

Thomas Le Barbanchon, Roland Rathelot and Alexandra Roulet, The CAGE Background Briefing Series No. 82, June 2017
background briefing series,policy briefing,behavioural economics and wellbeing

Thomas Le Barbanchon, Roland Rathelot and Alexandra Roulet, The CAGE Background Briefing Series No. 82, June 2017

The generosity of unemployment insurance can influence the time and energy job seekers dedicate to searching for a job, as well as the jobs they are willing to accept. Yet we know little about how unemployment insurance affects the reservation wages of the unemployed. Using new French data, this column shows that increasing unemployment generosity does not affect the reservation wages or the ‘pickiness’ of job seekers.

Behavioural Economics and Wellbeing