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Market-Based Solutions to Vital Economic Issues


Kenan Institute 2023 Grand Challenge: Workforce Disrupted
Market-Based Solutions to Vital Economic Issues
Nov 14, 2023

The Effects of Pay Transparency: A Brief Review

Part of our series on Workforce Disrupted


Pay transparency policies are increasingly popular among governments in the United States and around the world. For instance, many European countries require large employers to report gender-disaggregated pay statistics, and most U.S. states make the salaries of state employees available to the public. I summarize a growing body of academic work measuring the effects of transparency policies. These studies reveal that certain policies had the intended effects, such as reducing gender pay gaps. On the other hand, there is growing evidence of undesired effects. I conclude with policy recommendations and avenues for future research.

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