The Effects of Extended Unemployment Benefits on the Reservation Wage: Evidence from a Benefit Extension in Taiwan

2021 ◽  
Author(s):  
Po-Chun Huang
Keyword(s):  
Reservation Wage ◽  
Unemployment Benefits

scholarly journals The Effect of Unemployment Benefits and Nonemployment Durations on Wages

2016 ◽  
Vol 106 (3) ◽  
pp. 739-777 ◽  
Author(s):  
Johannes F. Schmieder ◽  
Till von Wachter ◽  
Stefan Bender
Keyword(s):  
Unemployment Insurance ◽  
Instrumental Variable ◽  
Reservation Wage ◽  
Unemployment Benefits ◽  
Reservation Wages ◽  
Wage Effects ◽  
Key Policy

We estimate that unemployment insurance (UI) extensions reduce reemployment wages using sharp age discontinuities in UI eligibility in Germany. We show this effect combines two key policy parameters: the effect of UI on reservation wages and the effect of nonemployment durations on wage offers. Our framework implies if UI extensions do not affect wages conditional on duration, then reservation wages do not bind. We derive resulting instrumental variable estimates for the effect of nonemployment durations on wage offers and bounds for reservation wage effects. The effect of UI on wages we find arises mainly from substantial negative nonemployment duration effects. (JEL J31, J64, J65)

Paradoxes of reservation wage setting in the Russian labor market. Part I

2016 ◽  
pp. 5-27
Author(s):  
R. Kapeliushnikov ◽  
A. Lukyanova
Keyword(s):  
Labor Market ◽  
Empirical Studies ◽  
Reservation Wage ◽  
Wage Setting ◽  
Reservation Wages ◽  
Monitoring Survey ◽  
Main Determinants ◽  
Subjective Estimates ◽  
Objective Indicators

Using panel data from the Russian Longitudinal Monitoring Survey for 2006-2014, the paper investigates reservation wages setting in the Russian labor market. The sample includes non-employed individuals wishing to get a job (both searchers and non-searchers). The first part of the paper provides a survey of previous empirical studies, describes data and analyzes subjective estimates of reservation wages in comparison with various objective indicators of actual wages. The analysis shows that wage aspirations of the majority of Russian non-employed individuals are overstated. However their wage expectations are rather flexible and decrease rapidly as the search continues that prevents high long-term unemployment. The second part of the paper provides an econometric analysis of main determinants of reservation wage and its impact on probability of re-employment and wages on searchers’ new jobs.

Divergent Paths of Inequality in Turkey and Spain

2018 ◽  
Author(s):  
Ekrem Karakoç
Keyword(s):  
Political Parties ◽  
Household Income ◽  
Party System ◽  
Social Programs ◽  
Social Policies ◽  
Unemployment Benefits ◽  
Social Security Systems ◽  
Security Systems ◽  
Electoral Campaigns ◽  
Key Sectors

Using most similar design and process-tracing methodology, this chapter investigates the divergent outcomes in income inequality in Turkey and Spain. Even though social-security systems in both countries have been hierarchical, benefiting civil servants, the security apparatus, and workers in key sectors and others in formal sectors at the expense of the rest, they have adopted different social policies over time. This chapter discusses how Turkish governments, with a focus on 1983 to the present time, have designed contributory and noncontributory pensions, healthcare, and other social programs that have affected household income differently. In democratic Spain, however, pension-related policies and unemployment benefits have been dominant forms of social policy, but the Spanish party system has not created major incentives for political parties to utilize these policies in electoral campaigns until recently. This chapter ends with a discussion of how social policies in Turkey and Spain have affected inequality since the two nations transitioned to democracy.

Wealth and preferences for redistribution: The effects of financial assets and home equity in 31 countries

2021 ◽  
pp. 002071522098808
Author(s):  
Liza G Steele
Keyword(s):  
Household Wealth ◽  
Welfare States ◽  
Social Effects ◽  
Financial Assets ◽  
Unemployment Benefits ◽  
Home Equity ◽  
Income Equality ◽  
Financial Wealth ◽  
Preferences For Redistribution ◽  
The Social

How does wealth affect preferences for redistribution? In general, social scientists have largely neglected to study the social effects of wealth. This neglect was partially due to a dearth of data on household wealth and social outcomes, and also to greater scholarly interest in how wealth has been accumulated rather than the social effects of wealth. While we would expect household wealth to be an important component of attitudes toward inequality and social welfare policies, research in this area is scarce. In this study, the relationship between wealth and preferences for redistribution is examined in cross-national global and comparative perspective using data on 31 countries from the 2009 wave of the International Social Survey Programme (ISSP), the first wave of that study to include measures of wealth. The findings presented compare the effects of two types of wealth—financial assets and home equity—and demonstrate that there are differences in effects by asset type and by redistributive policy in question. Financial wealth is more closely associated with attitudes about income equality, while home equity is more closely associated with attitudes about unemployment benefits. Moreover, while the upper categories of financial wealth have the largest negative effects on support for income equality, it is the middle categories of home equity that are most strongly associated with opposition to unemployment benefits. Effects also differ by country, but not in patterns that theories of comparative welfare states nor political economy would adequately explain.

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