Reservation Wages and Their Labor Market Effects for Black and White Male Youth

1986/01/01 by Harry J. Holzer · 1 citation
Economics, Econometrics and Finance · Health Professions · #Labor market dynamics and wage inequality #Firm Innovation and Growth #Employment and Welfare Studies

paper · doi:10.2307/145795

Abstract

This paper presents an empirical analysis of self-reported reservation wages for unemployed young black and white males. The results show that young blacks seek wages which are comparable to those of young whites in absolute terms, but which are higher relative to what is available on the demand side of the market. These relatively higher reservation wages of young blacks contribute to their unemployment durations and somewhat to their subsequently received wages. Changes in reservation wages may thus help to explain the trends in wages and employment of young blacks in recent years.

Citations

• Wage Discrimination: Reduced Form and Structural Estimates
• Male-Female Wage Differentials in Urban Labor Markets
• Sample Selection Bias as a Specification Error

Cited by

• Race, space, and unemployment duration

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