Wage bargaining or wage posting? Evidence from the employers' side

Hanna Brenzel, Hermann Gartner and Claus Schnabel

Labour Economics, 2014, vol. 29, issue C, 41-48

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.

Keywords: Wage posting; Wage bargaining; Hiring; Matching; Germany (search for similar items in EconPapers)
JEL-codes: E24 J30 J63 M51 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (67)

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Related works:
Working Paper: Wage Posting or Wage Bargaining? Evidence from the Employers' Side (2013)
Working Paper: Wage posting or wage bargaining? Evidence from the employers' side (2013)
Working Paper: Wage posting or wage bargaining? Evidence from the employers' side (2013)
Working Paper: Wage posting or wage bargaining? Evidence from the employers side (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:29:y:2014:i:c:p:41-48

DOI: 10.1016/j.labeco.2014.05.004

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