Pay Transparency and Gender Equality

Abstract

Since 2018, UK firms with at least 250 employees have been mandated to publicly disclose gender equality indicators. Exploiting variations in this mandate across firm size and time, we show that pay transparency closes 19 percent of the gender pay gap by reducing men’s wage growth. By combining different sources of data, we also provide suggestive evidence that the public availability of the equality indicators influences employers’ response as worse performing firms and employers potentially more exposed to public scrutiny seem to reduce their gender pay gap the most.

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