Please use this identifier to cite or link to this item:
Schlicht, Ekkehart
Year of Publication: 
Series/Report no.: 
IZA Discussion Papers 2507
Offering higher wages may enable firms to attract more applicants and screen them more carefully. If firms compete in this way in the labor market, selection wages emerge. This note illustrates this wage-setting mechanism. Selection wages may engender unconventional results, such as a pre-tax wage compression induced by the introduction of a progressive wage tax.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
429.02 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.