Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282620 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16493
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
national wage setting
labor markets
JEL: 
J24
J45
J33
H56
Document Type: 
Working Paper

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