An alternative method of estimating the worker's reservation wage

Mohanty, Madhu S.

doi:10.1080/10168730500382170

Cited by 15 publications

(20 citation statements)

References 25 publications

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“…A ênfase dada pela Teoria Neoclássica já chamava atenção para o papel do diferencial entre o salário de mercado e o salário de reserva na escolha individual entre trabalho e lazer. Nesse contexto, o salário de reserva, ao contrário do salário determinado pelo mercado de trabalho, possui caráter subjetivo, ou seja, é compreendido como nível de remuneração limiar, a partir do qual o trabalhador aceita ou não se inserir em determinada ocupação (Cahuc & Zylberberg 2004, Mohanty 2005, Pannenberg 2007. A partir das proposições neoclássicas, emergem, nos anos 50, as suposições inerentes a Teoria do Capital Humano, segundo a qual, os investimentos realizados pelos indivíduos em educação/qualificação ampliam a capacidade produtiva destes, fazendo surgir uma diferenciação entre os trabalhadores, e, por conseguinte, diferentes dotações salariais e exigências subjetivas quanto à oferta individual de trabalho.…”

Section: Introductionunclassified

“…Por outro lado, de acordo com Mohanty (2005), o salário de reserva depende da possibilidade de os indivíduos receberem uma oferta salarial, a qual, por sua vez, é condicionada à situação do mercado de trabalho e à qualificação/educação dos indivíduos. Neste contexto, o estudo do salário de reserva se constitui uma investigação do comportamento de indivíduos na busca por uma colocação, denotando preferências e expectativas acerca de melhores propostas de emprego, maiores rendimentos e melhor bem estar.…”

Section: Introductionunclassified

“…Já Menezes et al (2005), com base na Pesquisa de Emprego e Desemprego (PED), usaram como proxy do salário de reserva, o salário médio re-cebido pelos trabalhadores ocupados. No que tange à literatura internacional, existem diversos estudos efetuados, a saber: Jones (1988), Blau (1991), Hofler & Murphy (1994), Hinnosaar (2004), Mohanty (2005), Pannenberg (2007) que, de forma resumida, explicitam a relação de determinação existente entre algumas variáveis socioeconômicas dos indivíduos e o salário de reserva; este, na maioria das vezes, já informado por meio das pesquisas existentes nos respectivos países.…”

Section: Introductionunclassified

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O salário de reserva e a oferta de trabalho: evidências para o Brasil

Monte¹,

Ramalho²,

Pereira³

2011

Econ. Apl.

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O objetivo desse artigo é estimar o salário de reserva dos trabalhadores ocupados, desocupados e inativos no Brasil. Para tanto, a partir dos dados da PNAD de 2006, foi estimado um modelo de determinação conjunta da oferta de trabalho, emprego e salários, considerando a correção de viés de seleção amostral envolvida nas decisões de participação no mercado de trabalho e de procura por emprego. Em seguida, os salários de reserva foram calculados descontando-se a utilidade atrelada à participação na forca de trabalho das estimativas de salários preditos, condicionadas ao modelo supracitado. Em geral, as evidências encontradas sugerem uma relação positiva do salário de reserva com o nível de escolaridade e faixa etária dos trabalhadores.
The main goal of this paper is to estimate the reservation wage either for employed, unemployed or economically inactive individuals in Brazil. For this purpose, we use data from the National Household Sample Survey (PNAD) from 2006 and estimate a model of joint determination of labor supply, employment and wages, taking into account a correction of sample selection bias involved in both the workforce participation decision and the job search process. In turn, the reservation wages were estimated by discounting the value of utility for the workforce participation decision from the linear predictions of conditional wages. The finding suggests a positive relationship between reservation wages, education level and aged of workers from different positions on the labor market

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Section: Introductionunclassified

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O salário de reserva e a oferta de trabalho: evidências para o Brasil

Monte¹,

Ramalho²,

Pereira³

2011

Econ. Apl.

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“…This method cannot be used in this paper because the ISMU dataset is compiled on the basis of pooled cross-sections. 11 Mohanty (2005), in turn, generalises the procedure to cases with multiple selection bias following the approach in Meng and Schmidt (1985). Recently Baffoe-Bonnie (2009) uses a similar framework to study wage differentials.…”

Section: Endnotesmentioning

confidence: 99%

“…The methodology we use in this paper is based on the Mohanty's (2005) extension of the Heckman model with frictional unemployment and feedbacks between labor demand and supply. As will soon be clearer, from a technical point of view, the only difference between this methodology and Heckman's lies in the first stage, which is bivariate-probit rather than probit estimated.…”

Section: Empirical Approachmentioning

confidence: 99%

Skills or culture? An analysis of the decision to work by immigrant women in Italy

2013

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Activity and employment rates for immigrant women in many industrialised countries display a great variability across national groups. The aim of this paper is to assess whether this fact is due to a voluntary decision (i.e. large reservation wages by immigrants) or to an involuntary process (i.e. low labor market evaluation of their skills). This is done by estimating the reservation wage for each individual in a sample of immigrant women in Italy. Our results show that low activity and employment rates for certain national groups are not associated with high reservation wages. This implies that low participation should not be interpreted as a voluntary decision.JEL codes: J22, J61, J15

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Public Policy Induced Changes in Employment: Valuation Issues for Benefit-Cost Analysis

Haveman¹,

Weimer²

2015

J. Benefit Cost Anal.

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We explore the economic welfare effects of direct and indirect government-induced changes in employment under varying market conditions. We begin with a discussion of those policy-induced employment changes that seamlessly reshuffle workers among jobs in an efficient (i.e., full-employment, full-information) economy; generally such changes create few, if any, net changes in economic welfare not captured in changes in wage bills. We then turn to the effects of policy-induced employment changes in economies with two market distortions: (1) inflexible wages set by law or custom that result in involuntary unemployment during periods of deficient aggregate demand, and (2) illiquidity resulting from imperfect capital markets that prevent people from borrowing against future earnings. Induced employment changes in these circumstances impose real net social costs or generate real net social benefits beyond changes in the wage bill. We also assess the likely magnitude of the social opportunity cost of labor in the case of involuntary unemployment and imperfect liquidity, and address how the welfare effects of such employment changes should be valued. Based on currently available empirical research, we develop estimates of the opportunity costs of hiring or releasing an employee during periods of high unemployment with and without other market distortions. In contrast to conventional benefit-cost analysis practice, which treats releasing workers as having a negative opportunity cost, we estimate an opportunity cost for firing that is positive and equal to about 73% of pre-firing compensation, primarily because of the “scarring effect” of unemployment. Also in contrast to conventional practice, we estimate an opportunity cost for hiring an unemployed worker that is less than the worker’s opportunity cost of time.

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An alternative method of estimating the worker's reservation wage

Cited by 15 publications

References 25 publications

O salário de reserva e a oferta de trabalho: evidências para o Brasil

O salário de reserva e a oferta de trabalho: evidências para o Brasil

Skills or culture? An analysis of the decision to work by immigrant women in Italy

Public Policy Induced Changes in Employment: Valuation Issues for Benefit-Cost Analysis

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