Michèle Belot, Philipp Kircher, Paul Muller, 22 December 2018

Economic theory and the empirical evidence are mixed regarding the effect of wages on the volume of applications for job vacancies. This column presents the results of an experiment in which subjects saw artificial vacancies with randomly varying salaries. Results show that higher wages attract more interest on average, but that some job seekers prefer the lower wage jobs. Surveys suggest this is likely to be because they suspect less competition. 


CEPR Policy Research