Staff Working Paper No. 1,148
By Maria Balgova, Tsegay Tekleselassie, Lukas Hensel and Marc Witte
Wage information is rare in job adverts, yet crucial for search. To study this information friction, we run a field experiment with real vacancies, randomly adding or withholding wage information. Disclosing wages does not change average application volumes. Instead, it amplifies the wage elasticity of applications: higher‑wage vacancies receive more applicants, while lower‑wage vacancies receive fewer. Average applicant quality remains unchanged, challenging standard directed search models. We rationalise the lack of skill‑based sorting with two‑sided limited information about applicants’ skills. We further show that firms’ decision not to post wages can act as insurance against unproductive matches.
Wage information and applicant selection 