摘要：We analyze the impact of misperceptions of the unemployment rate on individual wages, using the European Social Survey.We follow a threefold strategy to tackle potential endogeneity problems, as the model includes the following: controls for worker’s ability, the regional unemployment rate, and country fixed effects.We estimate interval regression models.When subjective perceptions overstate the country unemployment rate, a one percentage point gap between the perceived and the actual rates reduces wages by 0.4 to 0.7 %.We discuss a potential mechanism.A pessimistic view of the labor market leads to concern over own employment prospects, lowering perceived bargaining power and reservation wages.
