Reservation Wages-Measurement and Determinants: Evidence from the KMP Survey

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dc.creatorWalker, Richard
dc.date2013-10-01T13:20:11Z
dc.date2013-10-01T13:20:11Z
dc.date2003-08
dc.date.accessioned2015-05-28T10:06:23Z
dc.date.available2015-05-28T10:06:23Z
dc.date.issued2015-05-28
dc.descriptionThis paper investigates the difficulties in measuring reservation wages, models the determinants of reservation wages, and compares reservation wages with predicted wages. Data is drawn from the Khayelitsha/Mitchell's Plain (KMP) survey. Certain factors (e.g. education, labour market status, household income and duration of unemployment) are significant in explaining variation in reservation wages. Importantly, a person's position in the labour market is not as a result of his/her reservation wage. Rather, reservation wages are a function of his/her labour market status: while those in wage-employment report a reservation wage based more on perceived labour market value, those in unemployment report a reservation wage influenced strongly by subsistence requirements. This study concludes that voluntary unemployment does not exist in KMP, with people in general reporting reservation wages well below what they could expect to earn.
dc.identifier0-7992-2203-8
dc.identifierhttp://hdl.handle.net/11090/632
dc.identifier.ris TY - Working Paper DA - 2015-05-28 DB - OpenUCT DP - University of Cape Town KW - Khayelitsha/Mitchell's Plain Survey KW - Reservation wages KW - Labour Market LK - https://open.uct.ac.za PB - University of Cape Town PY - 2015 T1 - Reservation Wages-Measurement and Determinants: Evidence from the KMP Survey TI - Reservation Wages-Measurement and Determinants: Evidence from the KMP Survey UR - http://hdl.handle.net/11090/632 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11090/632
dc.languageen
dc.publisherCSSR and SALDRU
dc.publisher.departmentSALDRUen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.relationCSSR/SALDRU Working Paper;38
dc.subjectKhayelitsha/Mitchell's Plain Survey
dc.subjectReservation wages
dc.subjectLabour Market
dc.titleReservation Wages-Measurement and Determinants: Evidence from the KMP Survey
dc.typeWorking Paper
uct.type.publicationResearchen_ZA
uct.type.resourceWorking Paperen_ZA
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