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Does Pay Transparency Affect the Gender Wage Gap? Evidence From Austria

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  • Andreas Gulyas
  • Sebastian Seitz
  • Sourav Sinha

Abstract

We study the 2011 Austrian Pay Transparency Law, which requires firms above a size threshold to publish internal reports on the gender pay gap. Using an event-study design, we show that the policy had no discernible effects on male and female wages, thus leaving the gender wage gap unchanged. The effects are precisely estimated and we rule out that the policy narrowed the gender wage gap by more than 0.5 p.p.. Moreover, we do not find evidence for wage compression within firms. The Austrian transparency reform might have little 'bite' because wage reports are company secret and not public information.

Suggested Citation

  • Andreas Gulyas & Sebastian Seitz & Sourav Sinha, 2021. "Does Pay Transparency Affect the Gender Wage Gap? Evidence From Austria," CRC TR 224 Discussion Paper Series crctr224_2021_194v2, University of Bonn and University of Mannheim, Germany.
  • Handle: RePEc:bon:boncrc:crctr224_2021_194v2
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    References listed on IDEAS

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    Cited by:

    1. René Böheim & Sarah Gust, 2022. "The Austrian Pay Transparency Law and the Gender Wage Gap," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(02), pages 25-28, March.
    2. Chen, Yunsi & Hu, Dezhuang, 2023. "Why are exporters more gender-friendly? Evidence from China," Economic Modelling, Elsevier, vol. 118(C).
    3. Allan, Corey & Maré, David C., 2022. "Who Benefits from Firm Success? Heterogenous Rent Sharing in New Zealand," IZA Discussion Papers 15264, Institute of Labor Economics (IZA).
    4. Abudy, Menachem (Meni) & Aharon, David Y. & Shust, Efrat, 2023. "Can gender Pay-Gap disclosures make a difference?," Finance Research Letters, Elsevier, vol. 52(C).
    5. Blundell, Jack, 2021. "Wage responses to gender pay gap reporting requirements," LSE Research Online Documents on Economics 114416, London School of Economics and Political Science, LSE Library.
    6. Sourav Sinha, 2022. "US Salary History Bans -- Strategic Disclosure by Job Applicants and the Gender Pay Gap," Papers 2202.03602, arXiv.org.
    7. Srikant Devaraj & Pankaj C. Patel, 2022. "State bans on pay secrecy and earnings: Evidence from the National Longitudinal Survey of Youth 1997," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 697-734, December.
    8. Duchini, Emma & Simion, Stefania & Turrell, Arthur, 2020. "Pay Transparency and Cracks in the Glass Ceiling," The Warwick Economics Research Paper Series (TWERPS) 1311, University of Warwick, Department of Economics.
    9. Wolfgang Frimmel & Bernhard Schmidpeter & Rene Wiesinger & Rudolf Winter-Ebmer, 2022. "Mandatory Wage Posting, Bargaining and the Gender Wage Gap," Economics working papers 2022-02, Department of Economics, Johannes Kepler University Linz, Austria.
    10. Jack Blundell, 2021. "Wage responses to gender pay gap reporting requirements," CEP Discussion Papers dp1750, Centre for Economic Performance, LSE.
    11. Bamieh, Omar & Ziegler, Lennart, 2022. "Can Wage Transparency Alleviate Gender Sorting in the Labor Market?," IZA Discussion Papers 15363, Institute of Labor Economics (IZA).
    12. René Böheim & Marian Fink & Christine Zulehner, 2021. "Die Entwicklung des Lohnunterschiedes zwischen Frauen und Männern in Österreich von 2005 bis 2019," WIFO Research Briefs 2, WIFO.

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    More about this item

    Keywords

    Pay Transparency; Gender Pay Gap;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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