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National Wage Setting

Author

Listed:
  • Jonathon Hazell
  • Christina Patterson
  • Heather Sarsons
  • Bledi Taska

Abstract

How do firms set wages across space? Using job-level vacancy data and a survey of HR managers, we show that 40-50% of a job’s posted wages are identical across locations within a firm. Moreover, nominal posted wages within the firm vary relatively little with local prices, a pattern we verify with other measures of job level wages. Using the co-movement of wage growth across establishments, we argue these patterns reflect national wage setting---a significant minority of firms choose to set the same nominal wage for a job across all their establishments, despite varying local labor market conditions.

Suggested Citation

  • Jonathon Hazell & Christina Patterson & Heather Sarsons & Bledi Taska, 2022. "National Wage Setting," NBER Working Papers 30623, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30623
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    Cited by:

    1. Ashraf, Nava & Bandiera, Oriana & Minni, Virginia & Quintas-Martínez, Víctor, 2024. "Gender Gaps across the Spectrum of Development: Local Talent and Firm Productivity," IZA Discussion Papers 17103, Institute of Labor Economics (IZA).
    2. Ellora Derenoncourt & David Weil, 2024. "Voluntary Minimum Wages," Working Papers 333, Princeton University, Department of Economics, Center for Economic Policy Studies..
    3. Fallick, Bruce & Villar, Daniel & Wascher, William, 2022. "Downward nominal wage rigidity in the United States in times of economic distress and low inflation," Labour Economics, Elsevier, vol. 78(C).
    4. Ricardo Dahis & Christiane Szerman, 2023. "Decentralizing Development: Evidence from Government Splits," Monash Economics Working Papers 2023-18, Monash University, Department of Economics.
    5. Nicolas Bonneton & Christopher Sandmann, 2023. "Non-Stationary Search and Assortative Matching," CRC TR 224 Discussion Paper Series crctr224_2023_465, University of Bonn and University of Mannheim, Germany.
    6. Jardim, Ekaterina & Long, Mark C. & Plotnick, Robert & Vigdor, Jacob & Wiles, Emma, 2024. "Local minimum wage laws, boundary discontinuity methods, and policy spillovers," Journal of Public Economics, Elsevier, vol. 234(C).
    7. Reyes, Germán, 2024. "Coarse Wage-Setting and Behavioral Firms," IZA Discussion Papers 17039, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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