RDP 1999-02: Reservation Wages and the Duration of Unemployment Appendix B: Results

Alexandra Heath and Troy Swann

January 1999

Table B1: Two Stage Estimation Results by Gender
  Males Females
  First stage Second stage First stage Second stage
Hourly reservation wage (dependent variable) −3.175*
(1.831)		 (dependent variable) −0.681
(1.596)
Instruments
Log family income 0.038*
(0.013)		 – 0.043*
(0.018)		 –
Family size 0.001
(0.009)		 – 0.009
(0.015)		 –
Education
Degree/diploma 0.091*
(0.047)		 −0.080
(0.316)		 −0.005
(0.068)		 −0.559*
(0.266)
Vocational qualifications 0.017
(0.031)		 0.016
(0.170)		 −0.014
(0.050)		 −0.215
(0.199)
Completed high school 0.049
(0.032)		 0.092
(0.195)		 0.051
(0.049)		 0.146
(0.193)
(Less than high school)
Personal characteristics
Age 0.007*
(0.001)		 0.041*
(0.014)		 0.005*
(0.002)		 0.026*
(0.010)
English first language −0.187*
(0.062)		 −0.685
(0.471)		 −0.015
(0.087)		 0.275
(0.343)
English as a second language, high proficiency −0.062*
(0.025)		 −0.262
(0.178)		 0.017
(0.033)		 0.270*
(0.135)
Married 0.013
(0.033)		 0.392*
(0.173)		 −0.055
(0.048)		 0.047
(0.175)
Work experience
No previous job 0.182*
(0.062)		 0.818*
(0.481)		 0.027
(0.095)		 0.082
(0.376)
Previous hourly pay 0.071*
(0.023)		 0.039
(0.188)		 0.011
(0.035)		 −0.179
(0.140)
Manufacturing −0.032
(0.033)		 0.404*
(0.189)		 −0.053
(0.061)		 −0.051
(0.256)
Manager/professional 0.099
(0.062)		 0.977*
(0.369)		 0.058
(0.093)		 0.888*
(0.385)
Advanced clerical 0.113*
(0.064)		 0.657
(0.402)		 0.103
(0.087)		 −0.091
(0.342)
Trade 0.043
(0.035)		 0.282
(0.203)		 −0.056
(0.107)		 0.461
(0.433)
(Low-skilled occupations)
Manager in manufacturing 0.079
(0.129)		 −0.880
(0.719)		 −0.172
(0.388)		 −0.973
(1.549)
Reasons for leaving job
Temporary job 0.012
(0.030)		 −0.501*
(0.165)		 0.081
(0.054)		 −0.593*
(0.246)
Ill health −0.020
(0.059)		 0.289
(0.321)		 0.030
(0.101)		 −0.063
(0.402)
Unsatisfactory conditions 0.047
(0.040)		 −0.151
(0.236)		 −0.041
(0.071)		 0.125
(0.291)
Child care −0.052
(0.050)		 0.247
(0.290)		 0.054
(0.059)		 0.118
(0.245)
(Lost job/firm bankrupt)
Local environment
Capital city 0.071*
(0.027)		 0.202
(0.195)		 0.094*
(0.043)		 −0.017
(0.225)
Rural area 0.028
(0.037)		 0.140
(0.207)		 0.119*
(0.065)		 −0.018
(0.304)
(Other urban area)
Index of disadvantage 0.001
(0.004)		 0.020
(0.024)		 0.005
(0.007)		 0.008
(0.030)
Search incentives
Unemployment benefit eligibility −0.023
(0.038)		 0.474*
(0.195)		 −0.025
(0.057)		 0.883*
(0.213)
Log housing costs 0.010
(0.017)		 −0.293*
(0.099)		 0.013
(0.027)		 −0.058*
(0.111)
Observations 682 682 381 381
R2 0.23 n.a. 0.10 n.a.
H0: Overall insignificance 7.79** 4.00** 1.64** 3.52**

Notes: First stage dependent variable: hourly reservation wage. Second stage dependent variable: log incomplete duration of unemployment. Standard errors in parentheses. ** P-value is less than 5 per cent. * Denotes significance at the 10 per cent level or lower.