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Salary History and Employer Demand: Evidence from a Two-Sided Audit

Author

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  • Amanda Y. Agan
  • Bo Cowgill
  • Laura K. Gee

Abstract

We study how salary disclosures affect employer demand using a field experiment featuring hundreds of recruiters evaluating over 2,000 job applications. We randomize the presence of salary questions and the candidates' disclosures for male and female applicants. Our findings suggest that extra dollars disclosed yield higher salary offers, willingness to pay, and perceptions of outside options by recruiters (all similarly for men and women). Recruiters make negative inferences about the quality and bargaining positions of nondisclosing candidates, though they penalize silent women less.

Suggested Citation

  • Amanda Y. Agan & Bo Cowgill & Laura K. Gee, 2025. "Salary History and Employer Demand: Evidence from a Two-Sided Audit," American Economic Journal: Applied Economics, American Economic Association, vol. 17(3), pages 380-413, July.
    • Handle: RePEc:aea:aejapp:v:17:y:2025:i:3:p:380-413
    DOI: 10.1257/app.20230365
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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