October 2014

IZA DP No. 8519: The Reservation Wage Curve: Evidence from the UK

published in: Economics Letters, 2015,126, 22-24

We investigate the relationship between an individuals' reservation wage, i.e. the lowest wage acceptable in order to enter into employment, and unemployment in the local area district. Largely unexplored in the literature this adds to the work which has examined the association between employee wages and unemployment – the 'wage curve'.