Marta Lachowska, Alexandre Mas, Raffaele Saggio, Stephen A. Woodbury
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Wage Posting or Wage Bargaining? A Test Using Dual Jobholders
We employ a revealed preference test to distinguish between wage posting and wage bargaining. Using a sample of dual jobholders in Washington State, we estimate the sensitivity of wages and separation rates to wage shocks in a secondary job. In lower parts of the wage distribution, improvements in the outside option lead to higher separations rates but not to higher wages, consistent with wage posting. In the highest wage quartile, improved outside options translate to higher wages but not higher separation rates, consistent with bargaining. In the aggregate, bargaining appears to be a limited determinant of wage setting.
期刊介绍:
Since 1983, the Journal of Labor Economics has presented international research that examines issues affecting the economy as well as social and private behavior. The Journal publishes both theoretical and applied research results relating to the U.S. and international data. And its contributors investigate various aspects of labor economics, including supply and demand of labor services, personnel economics, distribution of income, unions and collective bargaining, applied and policy issues in labor economics, and labor markets and demographics.