Wage information and applicant selection

Wage information is rare in job adverts, yet crucial for search. To study this information friction, we run a field experiment with real vacancies, randomly adding or withholding wage information. Disclosing wages does not change average application volumes. Instead, it amplifies the wage elasticity of applications: higher-wage vacancies receive more applicants, while lower-wage vacancies receive fewer. Average applicant quality remains unchanged, challenging standard directed search models. We rationalize the lack of skill-based sorting with two-sided limited information about applicants' skills. We further show that firms' decision not to post wages can act as insurance against unproductive matches.