scholarly journals Estimating the reservation wage across city groups in Colombia: A stochastic frontier approach

2021 ◽  
Author(s):  
Luz A. Florez ◽  
Ligia Melo-Becerra ◽  
Carlos Esteban Posada
Keyword(s):  
Empirical Evidence ◽  
Gender Gap ◽  
Stochastic Frontier ◽  
Search Theory ◽  
Reservation Wage ◽  
Positive Relation ◽  
Stochastic Frontier Approach ◽  
Level Of Education ◽  
Reservation Wages ◽  
Wage Increases

We use the stochastic frontier approach to estimate the reservation wage across different city groups in Colombia. We use the information of GEIH from 2008-2019 of 23 urban cities. We find empirical evidence in favour of the search theory predictions that suggest a positive relation of the reservation wage with the level of education and with the net family labour income. We also find a gender gap in the reservation wage and explore this gap controlling by the level of education and presence of children in the household. Contrary to the results found in the literature, we find that the presence of children reduces the reservation wage of women and men. Finally, we found that the reservation wage increases with the level of development and productivity of the cities, however, qualified workers in low-quality cities present higher reservation wages than median quality cities.

scholarly journals Land Ownership and Profitability of Greenhouse Production: Antalya Case

2018 ◽  
Vol 6 (7) ◽  
pp. 930 ◽  
Author(s):  
Rahmiye Figen Ceylan ◽  
Cengiz Sayın ◽  
Makbule Nisa Mencet Yelboğa ◽  
Meral Özalp ◽  
Eda İlbasmış ◽  
...  
Keyword(s):  
Agricultural Production ◽  
Stochastic Frontier ◽  
Land Ownership ◽  
Stochastic Frontier Approach ◽  
Greenhouse Production ◽  
Factors Affecting ◽  
Level Of Education ◽  
Production Technologies ◽  
The Impact ◽  
Relevant Factors

Agricultural production and income are important for Mediterranean region of Turkey. The region and especially Antalya province is well-known with greenhouse production. For greenhouse production achieving sustainability is important for meeting domestic and foreign demand and security of production lands. In order to measure the potential for improving greenhouse operators 281 farmers were surveyed in 2015 in Antalya and profit inefficiency and factors affecting inefficiencies of operators were estimated using stochastic frontier approach. Accordingly, the average inefficiency level of operators was found as 57 %, signifying the potential for improvement. The main objective was to undermine the impact of landownership on this inefficiency level. Yet, the impact of other relevant factors referring to greenhouse structures and famers’ characteristics were estimated as well. While level of education seemed to reduce inefficiency, household size had appeared as an inefficiency rising factor referring to professional labour endowment of greenhouse production in Antalya. Being renter of land appeared as an inefficiency rising factor as well as holding plastic house or having located in the western parts of Antalya. These findings indicated importance of supporting improved production technologies and use of strengthened structures. In addition, it appeared as essential to provide incentives to renters to cope with their costs.

scholarly journals Reservation Wages in Canadian Labour Markets

2005 ◽  
Vol 37 (1) ◽  
pp. 65-92 ◽  
Author(s):  
Abrar Hasan ◽  
Surendra Gera
Keyword(s):  
Job Search ◽  
Search Theory ◽  
Labour Markets ◽  
Reservation Wage ◽  
Reservation Wages ◽  
As If

Job search theory has been offered in recent years as one explanation of unemployment. A key element of the theory requires that workers behave as if they operate on a reservation wage strategy. The authors verify this hypothesis.

scholarly journals The Estimation of Reservation Wages: A Simulation-Based Comparison

2014 ◽  
Vol 234 (5) ◽  
Author(s):  
Julian S. Leppin
Keyword(s):  
Monte Carlo Simulation ◽  
Predictive Power ◽  
Stochastic Frontier ◽  
Stochastic Frontier Model ◽  
Reservation Wage ◽  
Cross Sectional ◽  
Reservation Wages ◽  
Stochastic Frontier Models ◽  
Simulation Based ◽  
The Mean

SummaryThis paper examines the predictive power of different estimation approaches for reservation wages. It applies stochastic frontier models for employed persons and the approach from Kiefer and Neumann (1979b) for unemployed persons. Furthermore, the question of whether or not reservation wages decrease over the unemployment period is addressed. This is done by a simulated panel with known reservation wages which uses data from the Socio-Economic Panel as a basis. The comparison of the estimators is carried out by a Monte Carlo simulation. In case of employed persons, the cross-sectional stochastic frontier model shows the best performance. The Kiefer-Neumann approach for unemployed persons is able to predict decreasing reservation wages but the rise of the mean reservation wage in case of a constant simulated reservation wage went undetected. In general, the Kiefer-Neumann approach overestimates the reservation wage.

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.

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