Reservation wage

[1] This wage is a theoretical representation of the hourly rate at which an individual values their own leisure time.

[3] This same study also found out that people who have not been employed before had higher reservation wages than those who had.

This finding could be explained by the fact they do not understand their realistic value in the labor market.

[4] There have been many studies on the effect of unemployment duration and benefits on the reservation wages of individuals.

"[5] Therefore, it makes sense that changes in unemployment benefits have a positive correlation with reservation wages.