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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. Des études récentes de la théorie de la recherche d’employés examinent comment les employeurs utilisent le mécanisme de détermination des salaires – soit par marchandage, soit en mentionnant une offre de salaire non‐négociable dans l’annonce de l’offre d’emploi – pour faciliter le processus de recherche. On examine les salaires mentionnés dans les annonces d’offre d’emplois aux États‐Unis, au Royaume‐Uni, et en Slovénie. Malgré des différences considérables dans l’incidence de l’annonce du salaire, les employeurs dans ces trois marchés sont moins susceptibles d’annoncer un salaire quand ils cherchent des travailleurs qualifiés. La décision d’annoncer un salaire ou non est seulement faiblement reliée aux résultats de la recherche des employeurs.

Suggested Citation

  • Vera Brenčič, 2012. "Wage posting: evidence from job ads," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(4), pages 1529-1559, November.
  • Handle: RePEc:wly:canjec:v:45:y:2012:i:4:p:1529-1559
    DOI: 10.1111/j.1540-5982.2012.01738.x
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