Tag
reservation_wage
4 findings
Labour & employmentMarginal Value of Non-Work Time (MVT)Mean hourly MVT rises monotonically from $4.80 for 5–10 hours/week to $8.95 for 20–25 hours/week, $12.00–$14.68 for 30–40 hours/week, and $21.89–$22.69 for 40–50 hours/week, yielding an average flow value of non-work time relative to pre-tax predicted market wage ($\tilde{z}$) of 0.58 ($s.e. = 0.04$).RCTLabour & employmentReservation Wage EscalationFive years post-program completion, public works participants experienced a 5 percentage point decline in the probability of engaging in any income-generating activity compared to non-participants, driven by elevated wage expectations and missed private sector opportunities.RCTLabour & employmentReservation Wage Rigidity Post-Employment ExposureReceiving short-term work experience resulted in a $124.40 increase in monthly reservation wages that was statistically insignificant (p > 0.10), and produced no statistically significant increase in the proportion of time spent actively searching for work (coefficient = 0.089, p > 0.10).RCTLabour & employmentSobering Belief ShockMarket exposure reduced worker reservation wages by 6.6% (p < 0.10) and wage mismatch by 4.2% (p < 0.10), while increasing job board visits by 3.01 visits (p < 0.05); treated firms increased professional vacancy advertising by 12 percentage points (p < 0.01) and job board recruitment by 9.6 percentage points (p < 0.05).RCT