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

Hanna Brenzel (), Hermann Gartner and Claus Schnabel
Additional contact information
Hanna Brenzel: Institute for Employment Research (IAB), Nuremberg

No 7624, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: hiring; wage bargaining; wage posting; matching; Germany (search for similar items in EconPapers)
JEL-codes: E24 J30 J63 M51 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2013-09
New Economics Papers: this item is included in nep-cdm, nep-lab, nep-lma and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published - published in: Labour Economics, 2014, 29, 41-48

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https://docs.iza.org/dp7624.pdf (application/pdf)

Related works:
Journal Article: Wage bargaining or wage posting? Evidence from the employers' side (2014)
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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