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Increasingly linked employer-employee data have become and are becoming available, opening up important new avenues for research. Important contributions to the analysis of wage determination can be expected from including employer behaviour “in the wage equation”, both as a stimulus to and a consequence of these data developments. This is particularly the case at the lower end of the wage distribution - be it at the very end where the minimum wage reigns, if any, or somewhat higher up to a low-wage threshold such as the often used two-thirds of the median wage. In this segment many extremely interesting and important issues of labour-market analysis such as inter-industry differentials, union and employer behaviour, the effects of institutions and rent sharing (or the absence of it), come together theoretically as well as empirically. More detailed information on individuals’ employer characteristics speak can help to improve answers to questions such as What determines the individuals’ chances of being in low-paid jobs? What determines the duration of being in low pay or, phrased differently, the chances of escaping it, by moving to either a higher-wage job or non-employment? What determines the amount of low-wage employment available in the economy? and, last not least, is the outcome competitive ? The improved analysis may throw a new and different light on the role not only of personal characteristics bus also of labour-market and other institutions. Though more and better data are becoming available there is still a long way to go before an economically comprehensive and internationally comparable stage will be reached. Until then the analysis of employer behaviour will remain a challenge. JEL Codes: J22, J21, J31, J42, C81.