The Pay and Non-Pay Content of Job Ads

TL;DR

This study assesses the informativeness of Norwegian job ads regarding pay and non-pay attributes, linking advertised information to employer attractiveness and revealing that non-pay features are as predictive as pay details.

Contribution

Develops a methodology to classify pay and non-pay information in job ads and links this data to measures of employer attractiveness using a job search model.

Findings

55% of ads include pay information

Nearly all ads mention non-pay attributes

Non-pay attributes are as predictive of attractiveness as pay

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.