National Wage Setting

Jonathon Hazell (), Christina Patterson (), Heather Sarsons () and Bledi Taska ()
Additional contact information
Jonathon Hazell: London School of Economics
Christina Patterson: University of Chicago Booth School of Business
Heather Sarsons: University of British Columbia, Vancouver
Bledi Taska: Lightcast

No 16493, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: national wage setting; labor markets (search for similar items in EconPapers)
JEL-codes: H56 J24 J33 J45 (search for similar items in EconPapers)
Pages: 89 pages
Date: 2023-09
New Economics Papers: this item is included in nep-hrm and nep-lma
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