Arbeitspapier

Selection wages: an example

Offering higher wages may enable firms to attract more applicants and screen them more carefully. If firms compete in this way in the labor market, selection wages emerge. This note illustrates this wage-setting mechanism. Selection wages may engender unconventional results, such as a pre-tax wage compression induced by the introduction of a progressive wage tax.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 2507

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Schlicht, Ekkehart
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2006

Handle
URN
urn:nbn:de:101:1-2008050966
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Schlicht, Ekkehart
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2006

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