National Wage Setting

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 16493

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Public Sector Labor Markets ; Compensation Packages; Payment Methods ; National Security and War
• Subject: national wage setting ; labor markets

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hazell, Jonathon ; Patterson, Christina ; Sarsons, Heather ; Taska, Bledi
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/282620
• Last update: 10.03.2025, 11:43 AM CET