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Control Function 1 Endogeneity 1 Reservation Wages 1 Test for Montonicity 1 Unobservable Instruments 1
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Free 1
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Book / Working Paper 1
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Undetermined 1
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Gutknecht, Daniel 1
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Department of Economics, University of Warwick 1
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The Warwick Economics Research Paper Series (TWERPS) 1
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RePEc 1
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Do Reservation Wages Decline Monotonically? A Novel Statistical Test
Gutknecht, Daniel - Department of Economics, University of Warwick - 2012
This paper develops a test for monotonicity of the regression function under endogeneity. The novel testing framework is applied to study monotonicity of the reservation wage as a function of elapsed unemployment duration. Hence, the objective of the paper is twofold : from a theoretical...
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