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

Hanna Brenzel, Hermann Gartner and Claus Schnabel

No 85, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: Using a representative establishment dataset, this paper is the first to analyze the incidence of wage posting and wage bargaining in the matching pro-cess 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 charac-terized 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 bar-gaining is more likely for more-educated applicants and in jobs with special requirements as well as in tight regional labor markets.

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: 2013
New Economics Papers: this item is included in nep-lab, nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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https://www.econstor.eu/bitstream/10419/84885/1/769075126.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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