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The persistent impact of multiple offers

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  • Guo, Junjie

Abstract

In search of a job, a worker may receive more than one offer. Focusing on new hires from non-employment, this paper documents (1) over 30% of them had multiple offers simultaneously just before starting the present job, (2) the probability of having multiple offers is negatively correlated with the unemployment rate, and (3) relative to workers with one offer, comparable workers with multiple offers enjoy a persistent wage premium of over 10% for about nine years. The findings have implications for understanding the contribution of search frictions to wage inequality and the sullying effect of recessions.

Suggested Citation

  • Guo, Junjie, 2022. "The persistent impact of multiple offers," Labour Economics, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:labeco:v:74:y:2022:i:c:s0927537121001366
    DOI: 10.1016/j.labeco.2021.102101
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    1. Guo, Junjie, 2024. "Sequential job posting and equilibrium wage dispersion with bunching," Labour Economics, Elsevier, vol. 87(C).

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    More about this item

    Keywords

    Human capital; Occupational choice; Search frictions; Wage inequality;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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