Wage Bargaining Privileges the Educated, Leaving Many Behind in Job Market
The study looked at how wages are set when people get hired for jobs in Germany. They found that most of the time, employers decide on the wage before hiring someone, especially in bigger companies and the public sector. This is called wage posting. In jobs that need more education or have specific requirements, wages are more likely to be negotiated, which is called wage bargaining. People who are unemployed or just finished training are less likely to negotiate their wages. Overall, two-thirds of job hirings in Germany involve wage posting, while the rest involve wage bargaining.