TY - RPRT AU - Schlicht, Ekkehart TI - Selection Wages: An Example PY - 2006/Dec/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 2507 UR - https://www.iza.org/publications/dp2507 AB - 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. KW - wage-tax KW - job-specific pay KW - wage formation KW - efficiency wage KW - incentive wage KW - mobility ER -