The Role of Reservation Wage in the Intention to Migrate: The Case of Romanian Youth

Abstract:

Romania faces a massive phenomenon of emigration. Numerous studies have analysed the advantages and disadvantages of migration as well as the determinants of this process. This article complements the existing studies by analysing the factors that influence the decision of young unemployed to emigrate, focusing on specific labour market issues: reservation wages and job search efforts. The results indicated that young people's financial expectations are the strongest determinant of their intention to emigrate. Also, those without higher education are more likely to leave the country, as well as those who have long sought a job without success.

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