Dear all, we kindly invite you to our next ECON Theory and Policy Seminar talk on Monday, April 8, 2024 from 4:00-5:30 pm (Seminarroom DA green 04, Freihaus Buidling, green area, 4th floor) Joao Galindo da Fonseca (University of Montréal) https://sites.google.com/site/joaoagdafonseca/home "How are wages determined: A quasi-experimental test of wage determination theories" We test whether firm-specific demand shocks impact wages, and disentangle predictions coming from wage bargaining and wage posting. We use a unique institutional feature of public procurement auctions in Brazil: the moment in which the auction ends is random. For close auctions, winner and runner-up are as good as randomly assigned. In addition, contract value is higher for auctions that (randomly) end earlier. Winning a contract increases wages. We disentangle the effect on wages that comes from changes in firm size (wage posting) and the part that comes from changes in contract value (bargaining). We find evidence consistent with bargaining. Further Events: https://www.tuwien.at/en/mg/econ/events Best, Julia Hutter for Alexia Fuernkranz-Prskawetz Julia Hutter TU Wien Institute of Statistics and Mathematical Methods in Economics Research Group Economics Phone: +43 1 58801 10531 Mail: mailto:julia.hutter@tuwien.ac.at https://econ.tuwien.ac.at/