We assess the sources and consequences of the gender pay gap using a combination of theory and measurement. We start by documenting three empirical facts. First, women are more likely than men to work at low-paying employers. Second, for women as for men, pay is not the sole determinant of workers' revealed-preference rankings of employers. Third, both pay and the revealed-preference rank differ between women and men within the same employer. To interpret these facts, we develop an empirical equilibrium search model featuring endogenous gender differences in pay, amenities, and recruiting intensities across employers. The estimated model suggests that compensating differentials explain one fifth of the gender gap, that there are significant output and welfare gains from eliminating gender differences, and that an equal-pay policy fails to close the gender pay gap.

/pdf/the-gender-pay-gap-micro-sources-and-macro-consequences-413vh6a7ps.pdf

The Gender Pay Gap: Micro Sources and Macro Consequences

The idea that worker utility is affected by co-worker wages has potentially broad labor market implications. In a month-long experiment with Indian manufacturing workers, we randomize whether co-workers within production units receive the same flat daily wage or different wages (according to baseline productivity rank). For a given absolute wage, pay inequality reduces output and attendance by 0.24 standard deviations and 12%, respectively. These effects strengthen in later weeks. Pay disparity also lowers co-workers’ ability to cooperate in their self-interest. However, when workers can clearly observe productivity differences, pay inequality has no discernible effect on output, attendance, or group cohesion.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

The Morale Effects of Pay Inequality

This paper studies firms’ and employees’ responses to pay transparency requirements. Each year since 2018, more than 10,000 UK firms have been required to disclose publicly their gender pay gap and gender composition along the wage distribution. Theoretically, pay transparency is meant to act as an information shock that alters the bargaining power of male and female employees vis-` a-vis the firm in opposite ways. Coupled with the potential negative effects of unequal pay on firms’ reputation, this shock could improve women’s relative occupational and pay outcomes. We test these theoretical predictions using a difference-in-differences strategy that exploits variations in the UK mandate across firm size and time. This analysis delivers four main findings. First, pay transparency increases women’s probability of working in above-median-wage occupations by 5 percent compared to the pre-policy mean. Second, while this effect has not yet translated into a significant rise in women’s pay, the policy leads to a 2.8 percent decrease in men’s real hourly pay, reducing the pre-policy gender pay gap by 15 percent. Third, combining the difference-in-differences strategy with a text analysis of job listings, we find suggestive evidence that treated firms adopt female-friendly hiring practices in ads for high-gender-pay-gap occupations. Fourth, a reputation motive seems to drive employers’ reactions, as firms publishing worse gender equality indicators score lower in YouGov Women’s Rankings. Moreover, publicly listed firms experience a 35-basis-point average fall in cumulative abnormal returns in the days following their publication of gender equality data.

Pay transparency and cracks in the glass ceiling

Men more than women succeed when negotiating over labor-market outcomes, and gender differences in negotiation likely contribute to the gender wage gap and to horizontal and vertical segregation in the labor market. We review the evidence on the many initiatives that have been put in place to reduce the effect of gender differences in negotiation. Categorizing these as either ‘fix-the-women’ or ‘fix-the-institutions’ initiatives we find serious challenges to the former. Women do not appear to be broken and encouraging them to negotiate more and differently often backfires. The evidence suggests that ‘fix-the-institution’ initiatives are more effective in reducing gender differences in outcomes. Concerns of adverse effects of banning negotiations or salary history requests have not materialized, and preliminary evidence points to reductions in the gender differences in negotiation outcomes. The strongest evidence on effectiveness in narrowing gender disparities is found for policies that increase transparency. Numerous studies find that gender differences in negotiation diminish when it is clear what to expect from the negotiation and suggest that initiatives which improve transparency are likely to help equalize opportunities at the bargaining table.

/pdf/gender-differences-in-negotiation-and-policy-for-improvement-mzbfkzp3fh.pdf

Gender Differences in Negotiation and Policy for Improvement

Pay gaps for women and minorities have persisted after accounting for observable differences. Why? If employers can access applicants’ salary histories while bargaining over wages, they can take advantage of past inequities, perpetuating inequality. Recently, a dozen US states have banned employer access to salary histories. We analyze the effects of these salary history bans (SHBs) on employer wage posting and pay in a difference-in-differences design. Following SHBs, employers posted wages more often and increased pay for job changers, particularly for women (6.2%) and non-whites (5.9%). Bargaining behavior appears to account for much of the persistence of residual wage gaps.

/pdf/perpetuating-inequality-what-salary-history-bans-reveal-m0ztrelepu.pdf

Perpetuating Inequality: What Salary History Bans Reveal About Wages

We study the 2011 Austrian Pay Transparency Law, which requires firms above a size threshold to publish reports on the gender pay gap. We exploit variation across firm size and time, to study the effects of transparency on the gender wage gap and individual wages, using the universe of Austrian social security records. Our results show that the policy had no discernible effects on male and female wages, and therefore no significant effects on the gender wage gap. The effects are precisely estimated and we can rule out that the policy narrowed the gender wage gap by more than half a percentage point. We find no evidence for wage compression at the establishment level. The policy led to an increase in the retention rate of workers, which points towards higher job satisfaction due to pay transparency.

https://www.econstor.eu/bitstream/10419/244405/1/1774200643.pdf

Does pay transparency affect the gender wage gap? Evidence from Austria

We study the effect of the US salary history ban which restricts employers from inquiring about applicants' pay history during the hiring process. We find that the bans reduce gender pay gap by 4.2% points in hourly wages, and by 4.5% points in weekly earnings. About 40% of the reduction in the weekly earnings gap comes from a decrease in the earnings of mostly middle-aged men. The increase in female earnings comes from both young and middle-aged women with at least some college education. While the gender pay gap closes in the private sector, public sector gaps increase, primarily because of an increase in men's earnings. We do not find any evidence for spillover effects of public sector bans in the private sector. In contrast, salary history bans for private employers generate negative spillover effects for public sector workers by reducing their earnings. We do not detect any effects of the ban on labor market participation and turnover rates.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID3458194_code3687961.pdf?abstractid=3458194&mirid=1

Salary History Ban: Gender Pay Gap and Spillover Effects

We study the 2011 Austrian Pay Transparency Law, which requires firms above a size threshold to publish internal reports on the gender pay gap. Using an event-study design, we show that the policy had no discernible effects on male and female wages, thus leaving the gender wage gap unchanged. The effects are precisely estimated and we rule out that the policy narrowed the gender wage gap by more than 0.4 p.p.. Moreover, we do not find evidence for wage compression within establishments. We discuss several possible reasons why the reform did not reduce the gender wage gap.

Does Pay Transparency Affect the Gender Wage Gap? Evidence From Austria

Salary History Bans: Strategic Disclosure by Job Applicants and the Gender Pay Gap

Introduction: In recent years, liver disease has been responsible for about 2 million fatalities worldwide, with 1 million of such deaths resulting from cirrhosis complications and 1 million each from viral hepatitis and hepatocellular cancer. The National Institutes of Health estimates that alcohol use may be accountable for 10,000 to 24,000 deaths from cirrhosis per year. According to the most recent WHO data, 184,193 people in India died from liver disease in 2018, accounting for 3.0% of all fatalities. The issue of whether or not commercial car drivers are aware of liver cirrhosis brought on by alcoholism still exists because there is a shortage of awareness on the condition. Objectives: This study was conducted to determine the knowledge and attitude toward liver cirrhosis due to alcoholism. Methodology: A pre-experimental study with one group pre-test and post-test design was undertaken to conduct the study from 20 august to 30 October using a simple random sampling technique. The study involved 60 commercial vehicle drivers who completed a standardized knowledge assessment and an attitude scale. Pen and paper were used to collect the data, which was then exported for additional analysis into SPSS version 20.0. The descriptive statistics were presented with mean standard deviation, frequency and percentage. The data were analyzed using a paired t-test. The chi-square analysis was used to check the association. Results: The study revealed that 46 drivers (76.7%) had inadequate knowledge, 14 drivers (23.3%) had moderate knowledge whereas none of them had adequate level of knowledge towards liver cirrhosis. And regarding assessment of attitude, data findings showed that that 40 (66.7%) of the participant had unfavorable attitude, 20 (33.3%) of them had neutral favorable attitude whereas none of them had favorable attitude regarding cirrhosis ofliver. The paired t test was carried out and it was found out invariably significant at p<0.05 level in both knowledge and attitude level with demographic variables. Conclusion: Our data suggest thatcommercial auto drivers have significantly less knowledge regarding liver cirrhosis due to alcohol consumption and also, they are showing a poor attitude towards liver cirrhosis as a major problem. So, it is very important to make sure that the commercial drivers including auto drivers should know about the health hazards related to alcoholism and also to reduce road accidents and unwanted behaviors. Our findings will support the stakeholders, auto rikshaw union leaders, and government policymakers to make a significant decision to improve public knowledge related to alcohol-related health problems.

An exploration of the potential knowledge and attitude towards liver cirrhosis due to alcoholism among commercials auto drivers in bengaluru south region through vat program - a pre-experimental approach

Sourav Sinha

Papers

Does pay transparency affect the gender wage gap? Evidence from Austria

Salary History Ban: Gender Pay Gap and Spillover Effects

Does Pay Transparency Affect the Gender Wage Gap? Evidence From Austria

Salary History Bans: Strategic Disclosure by Job Applicants and the Gender Pay Gap

An exploration of the potential knowledge and attitude towards liver cirrhosis due to alcoholism among commercials auto drivers in bengaluru south region through vat program - a pre-experimental approach