The theory of optimal job search focuses on reservation wages. Thus, comparative dynamic properties such as effects of changes in search subsidies (e.g. unemployment insurance benefits), etc. are usually stated in terms of changes in the reservation wage path. The principal difference between infinite and finite search horizon models is that the reservation wage is constant in the former and decreasing in the latter. Also, a central concern in models of search from an unknown distribution is identifying conditions under which reservation wages exist.'^ There have been no previous direct tests ofthe reservation wages predicted by finite horizon search models.^ One reason is that reservation wages are not observed in field labour markets.^ In addition, previous experimental tests of search theory have used observations of search duration, search income, and accepted wages, not reservation wages. The results of such tests generally do not imply rejection of (the implications of) the risk neutral search model. Some previous experimental tests of job search theory are reported i
