Research: Gender Pay Gaps Shrink When Companies Are Required to Disclose Them

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Transparency about wages does lead to a narrowing of the gender pay gap, showed a study of Danish companies.

Government-mandated reporting of gender pay discrepancies has been a subject of much debate in the last 5-10 years. Those arguing for legislation to require such reporting say that it will help to address the persistent gender wage gap. Opponents insist that not only is that unlikely; it will also increase companies’ administrative burden and decrease profits. Until recently there has been no strong evidence to support either side.on the impact of mandatory wage transparency.

Our results showed that from 2003 to 2008, the gender pay gap at mandatory reporting firms shrank 7%, from 18.9% to 17.5%, while the gap at control firms stayed steady at 18.9%. These findings suggest that governments can indeed take effective steps to address gender wage disparities by making it mandatory for firms to provide data showing discrepancies in gender pay.

While we didn’t see a statistically significant change in departure rates of male or female employees, there was a slightly higher number of departures of high-level females, an indication that women may be more likely to leave positions where there is no adjustment in pay towards closing the gender gap.

 

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So, 7%, or 1.4%?

The link doesn’t relate to the headline 🤷‍♀️

Thereby the secrecy

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