Using a representative establishment dataset, this paper analyzes the incidence of wage posting and wage bargaining in … the matching process. We show that both modes of wage determination coexist in the German labor market, with about two …-thirds of hirings being characterized by wage posting. Wage posting dominates in the public sector, in larger firms, in firms …

workers' entry wages are of similar magnitude as those predicted under monopsonistic wage setting, suggesting that monopsony … power should not be neglected when analysing wage cyclicality. …