Reservation Wage

The reservation wage is the minimum amount of money a person is willing to accept to start or continue working. It reflects their personal valuation of the work, considering factors like alternative job options, benefits, and personal preferences. If offered less than their reservation wage, they might choose not to work or look for better opportunities. Essentially, it's the threshold wage that makes working or accepting a job worthwhile for an individual, balancing the effort they put in against the compensation they require.