Publication: Wages and the value of nonemployment
Wages and the value of nonemployment
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Jäger, S., Schoefer, B., Young, S., & Zweimüller, J. (2020). Wages and the value of nonemployment. Quarterly Journal of Economics, 135(4), 1905–1963. https://doi.org/10.1093/qje/qjaa016
Abstract
Abstract
Abstract
Nonemployment is often posited as a worker’s outside option in wage-setting models such as bargaining and wage posting. The value of nonemployment is therefore a key determinant of wages. We measure the wage effect of changes in the value of nonemployment among initially employed workers. Our quasi-experimental variation in the value of nonemployment arises from four large reforms of unemployment insurance (UI) benefit levels in Austria. We document that wages are insensitive to UI benefit changes: point estimates imply a wage respons
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Creators (Authors)
- Jäger, Simon
- Schoefer, Benjamin
- Young, Samuel
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Citations
Jäger, S., Schoefer, B., Young, S., & Zweimüller, J. (2020). Wages and the value of nonemployment. Quarterly Journal of Economics, 135(4), 1905–1963. https://doi.org/10.1093/qje/qjaa016
