Original scientific paper

The Determinants of Reservation Wages in Croatia

Valerija Botrić

Abstract

This paper analyses reservation wage determinants in Croatia based on the data from the Croatian Bureau of Statistics' Labour Force Survey for the year 2006. The results indicate that the reservation wage is on average lower than the average net wage on the market. Furthermore, men, highly educated persons and those living in urban areas have a higher reservation wage. The local market situation influences the reservation wage; namely, the reservation wage is lower if the local unemployment rate is higher. Duration of unemployment is also negatively associated with a person's reservation wage, i.e. the reservation wage is lower if the duration of unemployment is longer. A separate analysis was conducted for the male and female subsample. Variables showing different results for male vs. female population were related to marital status and older population groups.

Keywords

reservation wage; unemployed; Croatia

Hrčak ID:

32564

URI

https://hrcak.srce.hr/32564

Publication date:

15.2.2009.

Article data in other languages: croatian

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