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PRODID:https://www.diw.de/de/diw_01.c.806339.de/veranstaltungen.html
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UID:diw_01.c.856627.en
LOCATION:Francine D. Blau Room,DIW Berlin,3.3.002b,Anton-Wilhelm-Amo-Strasse 58,10117 Berlin
SUMMARY:Wage Dispersion and Life-Cycle Unemployment
DESCRIPTION:12:30-13:30 //   Higher wage dispersion may induce unemployed workers to search longer for a job by increasing their reservation wages. This paper investigates the implications of this mechanism in a job search model featuring a finite work life, showing that a mean-preserving spread of the wage offer distribution could lead to a larger increase in reservation wages of younger than older workers because the longer the future working lifetime the expected return to current search increases. Using the German Socio-Economic Panel for the period 1992-2018, we provide robust evidence supporting this prediction. We group workers by gender, age, education, and region, and find that an increase in within-group market wage dispersion has a significant positive effect on reservation wages and unemployment durations for young job seekers in their 20s, while this effect decreases and becomes insignificant as their age increases.  Keywords: wage inequality; job search; reservation wages; youth unemployment                                                  
DTSTART:20221130T113000Z
DTEND:20221130T123000Z
DTSTAMP:20220925T220000Z
URL:https://www.diw.de/en/diw_01.c.856627.en/events/wage_dispersion_and_life-cycle_unemployment.html
ORGANIZER;CN=Viola Hilbert:mailto:vhilbert@diw.de
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