Wage Posting or Wage Bargaining? Evidence from the Employers' Side

Arbeitspapier

Using a representative establishment dataset, this paper is the first to analyze the incidence of wage posting and wage bargaining in the matching process from the employer's side. We show that both modes of wage determination coexist in the German labor market, with about two-thirds of hirings being characterized by wage posting. Wage posting dominates in the public sector, in larger firms, in firms covered by collective agreements, and in part-time and fixed-term contracts. Job-seekers who are unemployed, out of the labor force or just finished their apprenticeship are also less likely to get a chance of negotiating. Wage bargaining is more likely for more-educated applicants and in jobs with special requirements as well as in tight regional labor markets.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 7624

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Wages, Compensation, and Labor Costs: General ; Labor Turnover; Vacancies; Layoffs ; Personnel Economics: Firm Employment Decisions; Promotions
• Subject: wage posting ; wage bargaining ; hiring ; matching ; Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Brenzel, Hanna ; Gartner, Hermann ; Schnabel, Claus
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/89913
• Last update: 10.03.2025, 11:44 AM CET