The association between reported and calculated reservation wages

Do reported reservation wages correspond to the concept of reservation wages that economists have? Using panel data on British unemployed I calculate reservation wages from a search model and compare these with reported reservation wages. It is shown that men's reported reservation wages are greater than what the model predicts, and that for women there is hardly a relation between the two variables

Reservation Wages-Measurement and Determinants: Evidence from the KMP Survey

This paper investigates the difficulties in measuring reservation wages, models the determinants of reservation wages, and compares reservation wages with predicted wages. Data is drawn from the Khayelitsha/Mitchell's Plain (KMP) survey. Certain factors (e.g. education, labour market status, household income and duration of unemployment) are significant in explaining variation in reservation wages. Importantly, a person's position in the labour market is not as a result of his/her reservation wage. Rather, reservation wages are a function of his/her labour market status: while those in wage-employment report a reservation wage based more on perceived labour market value, those in unemployment report a reservation wage influenced strongly by subsistence requirements. This study concludes that voluntary unemployment does not exist in KMP, with people in general reporting reservation wages well below what they could expect to earn.

Reservation Wages, Expected wages and the duration of Unemployment: evidence from British Panel data

In this paper we analyse the role of wage expectations in an empirical model of incomplete spells of unemployment and reservation wages. To be specific, we model the duration of unemployment, reservation wages and expected wages simultaneously for a sample of individuals who are not in work, where wage expectations are identified via an exogenous policy shock based upon the introduction of Working Family Tax Credits (WFTC) in the UK. The results from the empirical analysis, which is based on the British Household Panel Survey, suggest that WFTC eligibility served to increase expected wages and that expected wages are positively associated with reservation wages. In addition, incorporating wage expectations into the econometric framework was found to influence the magnitude of the key elasticities: namely the elasticity of unemployment duration with respect to the reservation wage and the elasticity of the reservation wage with respect to unemployment duration

Do Reservation Wages Really Decline? Some International Evidence on the Determinants of Reservation Wages

Using cross-country data, we investigate the determinants of reservation wages and their course over the jobless spell. Higher unemployment benefits lead to higher reservation wages. Further, again consistent with the basic search model, repeated observations on the same individual provide scant evidence of declining reservation wages.arrival rate of job offers, unemployment benefits, reservation wages, probability of reemployment

ENDOGENIZING THE RESERVATION VALUE IN MODELS OF LAND DEVELOPMENT OVER TIME AND UNDER UNCERTAINTY

The notion of a reservation value is a key feature of most contemporary dynamic and stochastic models of land development. It is clear that the magnitude of the reservation value has a fundamental bearing on the decision to develop or preserve land. This notwithstanding, many papers that analyze land development in a dynamic and stochastic setting treat a landowners reservation value as an exogenous variable. Therefore, the purpose of this paper is to endogenize the reservation value in the context of a model of land development over time and under uncertainty. Our analysis shows that the optimal reservation value is the solution to a specific maximization problem. In addition, we also show that there exist theoretical circumstances in which the optimal reservation value is unique.Land Economics/Use,

Risk Aversion and Reservation Wages

This study examines the relationship between individual risk aversion and reservation wages using a novel set of direct measures of individual risk attitudes from the German Socio-Economic Panel (SOEP). We find that risk aversion has a significantly negative impact on the level of reservation wages. Moreover, we show that the elasticity of the reservation wage with respect to unemployment benefits is remarkably lower for risk-averse job seekers than for risk-loving job seekers. The results are consistent with an interpretation that risk-averse job seekers set their reservation wage levels sufficiently low, so that they accept almost every job offer.Risk Aversion, Reservation Wages, Survey Data

Anonymous reputation based reservations in e-commerce (AMNESIC)

Online reservation systems have grown over the last recent years to facilitate the purchase of goods and services. Generally, reservation systems require that customers provide some personal data to make a reservation effective. With this data, service providers can check the consumer history and decide if the user is trustable enough to get the reserve. Although the reputation of a user is a good metric to implement the access control of the system, providing personal and sensitive data to the system presents high privacy risks, since the interests of a user are totally known and tracked by an external entity. In this paper we design an anonymous reservation protocol that uses reputations to profile the users and control their access to the offered services, but at the same time it preserves their privacy not only from the seller but the service provider

Endogenizing the Reservation Value in Models of Land Development Over Time and Under Uncertainty

The notion of a reservation value is a key feature of most contemporary dynamic and stochastic models of land development. It is clear that the magnitude of the reservation value has a fundamental bearing on the decision to develop or preserve land. This notwithstanding, many papers that analyze land development in a dynamic and stochastic setting treat a landowner’s reservation value as an exogenous variable. Therefore, the purpose of this paper is to endogenize the reservation value in the context of a model of land development over time and under uncertainty. Our analysis shows that the optimal reservation value is the solution to a specific maximization problem. In addition, we also show that there exist theoretical circumstances in which the optimal reservation value is unique.

DiffServ resource management in IP-based radio access networks

The increasing popularity of the Internet, the flexibility of IP, and the wide deployment of IP technologies, as well as the growth of mobile communications have driven the development of IP-based solutions for wireless networking. The introduction of IP-based transport in Radio Access Networks (RANs) is one of these networking solutions. When compared to traditional IP networks, an IP-based RAN has specific characteristics, due to which, for satisfactory transport functionality, it imposes strict requirements on resource management schemes. In this paper we present the Resource Management in DiffServ (RMD) framework, which extends the DiffServ architecture with new admission control and resource reservation concepts, such that the resource management requirements of an IP-based RAN are met. This framework aims at simplicity, low-cost, and easy implementation, along with good scaling properties. The RMD framework defines two architectural concepts: the Per Hop Reservation (PHR) and the Per Domain Reservation (PDR). As part of the RMD framework a new protocol, the RMD On DemAnd (RODA) Per Hop Reservation (PHR) protocol will be introduced. A key characteristic of the RODA PHR is that it maintains only a single reservation state per PHB in the interior routers of a DiffServ domain, regardless of the number of flows passing through

The Determinants of the Reservation Wage

Most theories of involuntary unemployment predict that the equilibrium wage in the labor market will be greater than the reservation wage of the unemployed. These theories concentrate on explaining why the labor market does not clear, with the market wage falling to the level of the reservation wage, as predicted by the classical paradigm. Relatively little, however, has been said about the behavior of reservation wages. This paper seeks to fill the gap in the literature. We look at the empirical determinants of the reservation wage and suggest what this implies for the evolution of the natural rate of unemployment.