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Pay Transparency and the Gender Gap

Author

Listed:
  • Michael Baker
  • Yosh Halberstam
  • Kory Kroft
  • Alexandre Mas
  • Derek Messacar

Abstract

We examine the impact of public sector salary disclosure laws on university faculty salaries in Canada. The laws, which enable public access to the salaries of individual faculty if they exceed specified thresholds, were introduced in different provinces at different times. Using detailed administrative data covering the majority of faculty in Canada, and an event-study research design that exploits within-province variation in exposure to the policy across institutions and academic departments, we find robust evidence that the laws reduced the gender pay gap between men and women by approximately 20–40 percent.

Suggested Citation

  • Michael Baker & Yosh Halberstam & Kory Kroft & Alexandre Mas & Derek Messacar, 2023. "Pay Transparency and the Gender Gap," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 157-183, April.
    • Handle: RePEc:aea:aejapp:v:15:y:2023:i:2:p:157-83
    DOI: 10.1257/app.20210141
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    More about this item

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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