Salary transparency helps close the gender pay gap, but also has a nasty side effect

Are you being underpaid?

Sharing pay data is probably the easiest way to ensure every employee gets the same pay for the same job. But new research suggests that employers may claw back those gains made by underpaid staff over time. Economists from the University of Toronto, Princeton University and the Social Analysis and Modelling Division from Statistics Canada, the country’s national statistics agency, examined the impact of public-sector salary disclosure laws on university faculty salaries.

Using administrative data covering the universe of faculty in Canada, they came to three conclusions: Firstly, the laws reduced the gender-pay gap.

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