Work

Pay Transparency and Gender Equality

Year: 2025

Type: article

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.

Source: American Economic Journal Economic Policy

DOI: 10.1257/pol.20220766

Authors: Jack Blundell, Emma Duchini, Ştefania Simion, Arthur Turrell

Institutions: London School of Economics and Political Science, University of Essex, University of Bristol, Bank of England

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Gender equality, Decent work and economic growth, Peace, justice, and strong institutions

Open Access status: green

Funder: Stanford Institute for Economic Policy Research