Laid-Off Executive's Job Search
During the 1980s and early 1990s, an increasing spotlight was turned on executive and professional layoffs due to corporate restructuring and downsizing. This video traces the job search of a laid-off executive. Two economic concepts are illustrated. Economists refer to a "reservation wage," the minimum amount a job seeker will accept. Initially, this is often the level of pay at the former job. If the search is unsuccessful, however, the reservation wage tends to fall as expectations drop. Both ideas are illustrated here.