"Using rich German linked employer-employee data and endogenous switching regression models, I show that large firms and firms with a high export share or a low proportion of fixed-term workers provide higher wage growth for low-wage workers. While having many low-paid co-workers dampens the...

"Using a representative establishment dataset, this paper is the first to analyze the incidence of wage posting and wage bargaining in the matching process from the employer's side. We show that both modes of wage determination coexist in the German labor market, with about two-thirds of hirings...