Do Workers Bargain Over Wages? A Test Using Dual Jobholders

This paper examines the behavior of dual jobholders to test a simple model wage bargaining versus posting in which workers facing hours constraints their primary job take second, flexible-hours for additional income. When secondary offers sufficiently high wage, worker either bargains with employer increase or separates. The provides number predictions that we using matched employer-employee administrative data from Washington State. estimates match model’s quite well. First, separation probabilities are sensitive wages job, but not. Second, and separations due income effects. Third, takes place mainly among highest quartile; these workers, increases lead job. In contrast, lowest quartile, higher rates no significant consistent posting. These patterns suggest high-wage receive larger share surplus generated by employment relationship.