Labor Market Segmentation and the Determination of Reservation Wage

This paper analyses the relationship between labor market segmentation and the reservation wage.We found that: ① labor market segmentation is an important factor which affects the reservation wage.Taking the household registration system as the indicators of labor market segmentation,the estimate shows that the urban job seekers' reservation wage are higher than the rural job-seekers'.② gender,age and other personal characteristics have impacts on reservation wage.Men's reservation wage is higher than women's,age's impact on reservation wage is non-linear,the job-seekers' reservation wage increases with age at early stage,then declines after it reaches some degree.③ the higher level of human capital is,such as education and skills,the higher the reservation wage will be.