Wage bargaining or wage posting? Evidence from the employer's side

Brenzel H, Gartner H, Schnabel C (2014)


Publication Language: English

Publication Type: Journal article

Publication year: 2014

Journal

Publisher: Elsevier

Book Volume: 29

Pages Range: 41-48

DOI: 10.1016/j.labeco.2014.05.004

Abstract

Using a representative establishment dataset, this paper is the first to analyze the incidence of wage bargaining and wage posting in the matching process from the employers' side. We show that both modes of wage determination coexist in the German labor market, with more than one-third of hirings being characterized by individual wage negotiations. Wage bargaining is more likely for more-educated applicants, for jobs with special requirements, and in tight regional labor markets. Wage posting (in the sense of a fixed offer) dominates in the public sector, in larger firms, in firms covered by collective bargaining agreements, and in jobs involving part-time and fixed-term contracts. Job seekers who are unemployed, out of the labor force or have just finished an apprenticeship are also less likely to have a chance to negotiate.

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APA:

Brenzel, H., Gartner, H., & Schnabel, C. (2014). Wage bargaining or wage posting? Evidence from the employer's side. Labour Economics, 29, 41-48. https://dx.doi.org/10.1016/j.labeco.2014.05.004

MLA:

Brenzel, Hanna, Hermann Gartner, and Claus Schnabel. "Wage bargaining or wage posting? Evidence from the employer's side." Labour Economics 29 (2014): 41-48.

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