National Wage Setting

Jonathon Hazell, Christina Patterson, Heather Sarsons and Bledi Taska

No 30623, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: J3 J31 (search for similar items in EconPapers)
Date: 2022-11
New Economics Papers: this item is included in nep-hrm, nep-lma and nep-ure
Note: EFG LS
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Citations: View citations in EconPapers (7)

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