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Pay Transparency and Gender Equality

Author

Listed:
  • Jack Blundell
  • Emma Duchini
  • Ştefania Simion
  • Arthur Turrell

Abstract

Since 2018, UK firms with at least 250 employees have been mandated to publicly disclose gender equality indicators. Exploiting variations in this mandate across firm size and time, we show that pay transparency closes 19 percent of the gender pay gap by reducing men's pay growth. By combining different sources of data, we also provide suggestive evidence that the public availability of the equality indicators enhances public scrutiny. In turn, employers more exposed to public scrutiny seem to reduce their gender pay gap the most.

Suggested Citation

  • Jack Blundell & Emma Duchini & Ştefania Simion & Arthur Turrell, 2025. "Pay Transparency and Gender Equality," American Economic Journal: Economic Policy, American Economic Association, vol. 17(2), pages 418-445, May.
  • Handle: RePEc:aea:aejpol:v:17:y:2025:i:2:p:418-45
    DOI: 10.1257/pol.20220766
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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