Unemployment Benefits and Reservation Wages: Key Elasticities from a Stripped-Down Job Search Approach

This paper exploits survey information on reservation wages and data on actual wages from the European Community Household Panel to deduce, in the manner of Lancaster and Chesher, additional parameters of a stylized structural search model; specifically, reservation wage and transition/duration elasticities. The informational requirements of this approach are minimal, thereby facilitating comparisons between countries. Further, its policy content is immediate in so far as the impact of unemployment benefit rules and measures increasing the arrival rate of job offers are concerned. These key elasticities are computed for the United Kingdom and 11 other European nations.

Youth unemployment and psychological distress in the Republic of Ireland

Unemployment is the most significant influence on the levels of psychological dis tress of young adults. Unlike the situation for the adult population, social class and income are not contributory factors. Social class of origin, however, does have a contributory effect. Feelings of lack of control and attribution of responsibility for employment solely to structural or political factors increase the impact of unemployment. Evidence in relation to employment commitment does not support ''culture of poverty'' type explanations. Unemployed youth appear to be ''people with a problem'' rather than ''problem people''. (C) 1997 The Association for Professionals in Services for Adolescents.