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How wage announcements affect job search - a field experiment

Report
Authors Michele Belot
Philipp Kircher
Paul Muller
Publisher University of Gothenburg
Place of publication Gothenburg
Publication year 2018
Published at Department of Economics
Language en
Keywords online job search, directed search, wage competition, field experiments
Subject categories Economics

Abstract

We study how job seekers respond to wage announcements by assigning wages randomly to pairs of otherwise similar vacancies in a large number of professions. High wage vacancies attract more interest, in contrast with much of the evidence based on observational data. Some applicants only show interest in the low wage vacancy even when they were exposed to both. Both findings are core predictions of theories of directed/competitive search where workers trade o_ the wage with the perceived competition for the job. A calibrated model with multiple applications and on-the-job search induces magnitudes broadly in line with the empirical findings.

Page Manager: Webmaster|Last update: 9/11/2012
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