@TechReport{iza:izadps:dp2806,
            	author={Pannenberg, Markus},
            	title={Risk Aversion and Reservation Wages},
            	year={2007},
	month={May},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={2806},
            	url={https://www.iza.org/index.php/publications/dp2806},
	abstract={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.},
	keywords={risk aversion;reservation wages;survey data},
            }