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High unemployment would then result from high reservation wages.
This suggests high reservation wages are not the main constraint.
We consider three possible explanations for this: high minimum wages, high reservation wages, or high reservation utility.
We therefore want to understand whether this is due to high reservation wages or high reservation utility driven by non-wage job attributes.
Our results show that low activity and employment rates for certain national groups are not associated with high reservation wages.
To guarantee that all consumers buy at least one platform, the theoretical model assumes that all consumers have an identical (and sufficiently high) reservation value, (c^{u}).
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Air France pointed out that former French presidents and their families, "in accordance with tradition, can take advantage of transport facilities in the highest reservation category".
Higher insurance leads to higher reservation wages and thus to potentially higher wages and lower employment.
Consequently, they will have a higher reservation wage and lower labor supply if CLM is available.
A higher reservation wage is also likely to lead to longer unemployment duration5.
At the same time, they have higher reservation wages (Caliendo et al. 2015).
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