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Can wage transparency alleviate gender sorting in the labour market?

Author

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  • Omar Bamieh
  • Lennart Ziegler

Abstract

SUMMARYA large share of the gender wage gap can be attributed to occupation and employer choices. If workers are not well informed about these pay differences, increasing wage transparency might alleviate the gender gap. We test this hypothesis by examining the impact of mandatory wage postings. In 2011, Austria introduced a policy that requires firms to provide a minimum wage offer in job postings. To compare the pay prospects of vacancies before and after the introduction, we predict posted wages using detailed occupation–firm cells, which explain about 75% of the variation in wage postings. While we estimate a substantial gender gap of 15 log points, mandatory wage postings do not affect gender sorting into better-paying occupations and firms.

Suggested Citation

  • Omar Bamieh & Lennart Ziegler, 2025. "Can wage transparency alleviate gender sorting in the labour market?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 40(122), pages 401-426.
    • Handle: RePEc:oup:ecpoli:v:40:y:2025:i:122:p:401-426.
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    File URL: http://hdl.handle.net/10.1093/epolic/eiae025
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    More about this item

    Keywords

    J16; J31; J62; J63; J68;
    All these keywords.

    JEL classification:

    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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