The study looked at how wages are set in different regions based on the number of job opportunities available. They found that in areas with more job options, companies tend to offer higher wages to attract the best workers. This is because they can be pickier about who they hire. The researchers used data from Germany to test their ideas and found that firm size has a bigger impact on wages in urban areas compared to rural areas. This suggests that companies in cities have more power to set wages than those in the countryside.