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Wage posting: evidence from job ads

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  • Vera Brenčič

Abstract

Recent studies of search theory examine how employers use a wage-setting mechanism - either by bargaining or through the posting of a non-negotiable wage offer in a job ad - to facilitate search. We contribute to this literature by examining wage posting in job ads in the US, the UK, and Slovenia. Despite considerable differences in the incidence of wage posting, employers in all three markets are less likely to post a wage offer when searching for skilled workers. The decision on whether or not to post a wage offer is only weakly related to the outcomes of employers' search.

Suggested Citation

  • Vera Brenčič, 2012. "Wage posting: evidence from job ads," Canadian Journal of Economics, Canadian Economics Association, vol. 45(4), pages 1529-1559, November.
    • Handle: RePEc:cje:issued:v:45:y:2012:i:4:p:1529-1559
    DOI: 10.1111/j.1540-5982.2012.01738.x
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    Citations

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    Cited by:

    1. Brenzel, Hanna & Gartner, Hermann & Schnabel, Claus, 2014. "Wage bargaining or wage posting? Evidence from the employers' side," Labour Economics, Elsevier, vol. 29(C), pages 41-48.
    2. Kuhn, Peter J. & Shen, Kailing, 2014. "Do Employers Prefer Undocumented Workers? Evidence from China's Hukou System," IZA Discussion Papers 8289, Institute of Labor Economics (IZA).
    3. Peter Kuhn & Kailing Shen, 2015. "Do employers prefer migrant workers? Evidence from a Chinese job board," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-31, December.
    4. Ioana Marinescu & Ronald Wolthoff, 2020. "Opening the Black Box of the Matching Function: The Power of Words," Journal of Labor Economics, University of Chicago Press, vol. 38(2), pages 535-568.
    5. Di Addario, Sabrina & Kline, Patrick & Saggio, Raffaele & Sølvsten, Mikkel, 2023. "It ain’t where you’re from, it’s where you’re at: Hiring origins, firm heterogeneity, and wages," Journal of Econometrics, Elsevier, vol. 233(2), pages 340-374.
    6. Delgado Helleseter, Miguel & Kuhn, Peter J. & Shen, Kailing, 2016. "Age and Gender Profiling in the Chinese and Mexican Labor Markets: Evidence from Four Job Boards," IZA Discussion Papers 9891, Institute of Labor Economics (IZA).
    7. Miguel Delgado Helleseter & Peter Kuhn & Kailing Shen, 2020. "The Age Twist in Employers’ Gender Requests: Evidence from Four Job Boards," Journal of Human Resources, University of Wisconsin Press, vol. 55(2), pages 428-469.
    8. Choi, Sekyu & Figueroa, Nincen & Villena-Roldán, Benjamin, 2020. "Wage Cyclicality Revisited: The Role of Hiring Standards," MPRA Paper 120307, University Library of Munich, Germany, revised 21 Apr 2022.
    9. Honey Batra & Amanda M. Michaud & Simon Mongey, 2023. "Online Job Posts Contain Very Little Wage Information," Opportunity and Inclusive Growth Institute Working Papers 083, Federal Reserve Bank of Minneapolis.
    10. Stefano Banfi & Benjamín Villena-Roldán, 2019. "Do High-Wage Jobs Attract More Applicants? Directed Search Evidence from the Online Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 715-746.
    11. Kohei Kawamura & József Sákovics, 2014. "Spillovers of Equal Treatment in Wage Offers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(5), pages 487-501, November.
    12. Sugat Chaturvedi & Kanika Mahajan & Zahra Siddique, 2024. "Using Domain-Specific Word Embeddings to Examine the Demand for Skills," Research in Labor Economics, in: Big Data Applications in Labor Economics, Part B, volume 52, pages 171-223, Emerald Group Publishing Limited.
    13. R. Jason Faberman & Marianna Kudlyak, 2016. "What Does Online Job Search Tell Us about the Labor Market?," Economic Perspectives, Federal Reserve Bank of Chicago, issue 1, pages 1-15.
    14. Faberman, R. Jason & Menzio, Guido, 2018. "Evidence on the relationship between recruiting and the starting wage," Labour Economics, Elsevier, vol. 50(C), pages 67-79.
    15. Faryna, Oleksandr & Pham, Tho & Talavera, Oleksandr & Tsapin, Andriy, 2022. "Wage and unemployment: Evidence from online job vacancy data," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 52-70.
    16. Kircher, Philipp & Wright, Randall & Julien, Benoit & Guerrieri, Veronica, 2017. "Directed Search: A Guided Tour," CEPR Discussion Papers 12315, C.E.P.R. Discussion Papers.
    17. Kawamura, Kohei & Sákovics, József, 2013. "Partial Equal Treatment in Wage Offers," SIRE Discussion Papers 2013-06, Scottish Institute for Research in Economics (SIRE).
    18. Alan Manning, 2021. "Monopsony in Labor Markets: A Review," ILR Review, Cornell University, ILR School, vol. 74(1), pages 3-26, January.
    19. Poeschel, Friedrich, 2018. "Why do employers not pay less than advertised? Directed search and the Diamond paradox," MPRA Paper 87920, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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