That’s one of the findings of a new working paper, distributed by the National Bureau of Economic Research, that examines pay-transparency policies over the past two decades.
While policies that help workers compare pay across different companies can encourage them to seek better salaries or positions, policies that let workers compare pay within their company could lead to interpersonal conflict with peers or resentment about co-workers’ salaries, the paper said. “‘We’ve seen a lot of wage comparisons that upset people, and employers bargain very aggressively in those cases.’”
A primary reason behind pay-transparency measures is to empower workers and close the pay gap for female workers and minority workers. The wage gap remains significant between genders, and especially when gender is combined with race.
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