How Wage Announcements Affect Job Search—A Field Experiment

A-Tier
Journal: American Economic Journal: Macroeconomics
Year: 2022
Volume: 14
Issue: 4
Pages: 1-67

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In a field experiment, we study how job seekers respond to posted wages by assigning wages randomly to pairs of otherwise similar vacancies in a large number of professions. Higher wages attract significantly more interest. Still, a nontrivial number of applicants only reveal an interest in the low-wage vacancy. With a complementary survey, we show that external raters perceive higher-wage jobs as more competitive. These findings qualitatively support core predictions of theories of directed/competitive search, though in the simplest calibrated model, applications react too strongly to the wage. We discuss extensions such as on-the-job search that rectify this.

Technical Details

RePEc Handle
repec:aea:aejmac:v:14:y:2022:i:4:p:1-67
Journal Field
Macro
Author Count
3
Added to Database
2026-01-24