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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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Randall Wright & Philipp Kircher & Benoit Julîen & Veronica Guerrieri, 2017. "Directed Search: A Guided Tour," NBER Working Papers 23884, National Bureau of Economic Research, Inc.
    9. 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.
    10. Alan Manning, 2021. "Monopsony in Labor Markets: A Review," ILR Review, Cornell University, ILR School, vol. 74(1), pages 3-26, January.
    11. 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.
    12. 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).
    13. 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).
    14. Choi, Sekyu & Figueroa, Nincen & Villena-Roldán, Benjamin, 2020. "Wage Cyclicality Revisited: The Role of Hiring Standards," MPRA Paper 98240, University Library of Munich, Germany.
    15. 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.
    16. 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.
    17. 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.
    18. Chaturvedi, Sugat & Mahajan, Kanika & Siddique, Zahra, 2023. "Using Domain-Specific Word Embeddings to Examine the Demand for Skills," IZA Discussion Papers 16593, Institute of Labor Economics (IZA).
    19. Kawamura, Kohei & Sákovics, József, 2013. "Partial Equal Treatment in Wage Offers," SIRE Discussion Papers 2013-06, Scottish Institute for Research in Economics (SIRE).
    20. Brenzel, Hanna & Gartner, Hermann & Schnabel, Claus, 2013. "Wage Posting or Wage Bargaining? Evidence from the Employers' Side," IZA Discussion Papers 7624, Institute of Labor Economics (IZA).

    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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