makes sense that changes in unemployment benefits have a positive correlation with reservation wages. With regards to the effect of unemployment duration on reservation wages it has mostly been found that "reservation wages decline at a modest rate over the unemployment spell." It is important to remember that reservation wage is not the only value that is placed on a job. Individuals may place value on non-wage characteristics, such as the ability to work from home or flexible working hours. Just as a worker has an incentive to search for a high wage when looking for a job, a consumer has an incentive to search for a low price when purchasing a good. The highest price the consumer is willing to pay for a particular product is that consumer's reservation price. See also Search theory Job hunting List of economics topics References External links The IAB info platform Reservation wages of the unemployed of the Institute for Employment Research, Nuremberg, Germany, presents scientific findings on "reservation wages". {{Authority control}} Wages and salaries