Moeller, Joachim and Aldashev, Alisher (2007) Wage inequality, reservation wages and labor market participation: Testing the implications of a search-theoretical model with regional data. INTERNATIONAL REGIONAL SCIENCE REVIEW, 30 (2). pp. 120-151. ISSN 0160-0176,
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This article presents an analysis of the variation of gender-specific labor-market participation rates across regions. A search-theoretical model with intertemporal optimization behavior of agents suggests that a higher regional wage level fosters participation, whereas higher unemployment discourages workers. The authors extend the standard model by introducing two measures of dispersion, one for the spread below and one for the spread above the median. It is shown that wage dispersion in the lower tail of the distribution decreases the value of search and leads to lower participation rates, although the reverse is true for wage dispersion in the upper tail. These implications of the model are tested using spatial econometrics.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | JOB SEARCH; SPATIAL DEPENDENCE; UNEMPLOYMENT; INFORMATION; participation behavior in regional labor markets; search models; reservation wage; wage inequality; median-preserving spread; spatial econometrics |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Entpflichtete oder im Ruhestand befindliche Professoren > Lehrstuhl für Empirische Makroökonomie und Regionalökonomie (Prof. Dr. Joachim Möller) Business, Economics and Information Systems > Institut für Immobilienenwirtschaft / IRE|BS > Alumni or Retired Professors > Lehrstuhl für Empirische Makroökonomie und Regionalökonomie (Prof. Dr. Joachim Möller) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 16 Dec 2020 10:27 |
| Last Modified: | 16 Dec 2020 10:27 |
| URI: | https://pred.uni-regensburg.de/id/eprint/32955 |
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