Report

The Pay and Non-Pay Content of Job Ads

Abstract: How informative are job ads about the actual pay and amenities offered by employers? Using a comprehensive database of job ads posted by Norwegian employers, we develop a methodology to systematically classify the information on both pay and non-pay job attributes advertised in vacancy texts. We link this information to measures of employer attractiveness, which we derive from a job search model estimated on observed wages and worker mobility flows. About 55 percent of job ads provide information related to pay and nearly all ads feature information on non-pay attributes. We show that publicly advertised job attributes are meaningful predictors of employer attractiveness, and non-pay attributes are about as predictive as pay-related attributes. High-pay employers mention pay-related attributes more often, while high-amenity employers are more likely to advertise flexible working hours and contract duration.

Keywords: amenities; non-pecuniary job attributes; compensating differentials; worker mobility; information frictions; pay transparency; job ads; text analysis; vacancy duration;

JEL Classification: J23; J32; J33; J62; J63;

https://doi.org/10.59576/sr.1124

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Staff Reports

Publication Date: 2024-09-01

Number: 1124