The Gender Gap of Reservation Wage: New Evidence for Unemployed Workers?

The importance of difference in reservation wages for the gender wage gap based on two waves of survey data for a sample of newly unemployed individuals in Germany. These case are great for research on the ground. Especially for Indonesia. The perform of a decomposition analysis measures for reservation wage, detailed information on education, socio-demographics, labor market history, as well as personality traits. In this case, the findings indicate that the gender wage gap becomes small and statistically insignificant once we control for reservation wages. Moreover, the differences in reservation wages could arise from productivity differences, the fact that women anticipate discrimination and different unobserved traits or preferences.