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Pay transparency and gender equality

Author

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

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

  • Blundell, Jack & Duchini, Emma & Simion, Ştefania & Turrell, Arthur, 2025. "Pay transparency and gender equality," LSE Research Online Documents on Economics 129500, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:129500
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    File URL: http://eprints.lse.ac.uk/129500/
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    References listed on IDEAS

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    1. Morten Bennedsen & Elena Simintzi & Margarita Tsoutsoura & Daniel Wolfenzon, 2022. "Do Firms Respond to Gender Pay Gap Transparency?," Journal of Finance, American Finance Association, vol. 77(4), pages 2051-2091, August.
    2. Michèle Belot & Philipp Kircher & Paul Muller, 2022. "How Wage Announcements Affect Job Search—A Field Experiment," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(4), pages 1-67, October.
    3. Abi Adams & Tom Waters & Maria Balgova & Matthias Qian, 2023. "Firm concentration & job design: the case of schedule flexible work arrangements," IFS Working Papers W23/14, Institute for Fiscal Studies.
    4. Andreas Leibbrandt & John A. List, 2015. "Do Women Avoid Salary Negotiations? Evidence from a Large-Scale Natural Field Experiment," Management Science, INFORMS, vol. 61(9), pages 2016-2024, September.
    5. Zoe B. Cullen, 2023. "Is Pay Transparency Good?," NBER Working Papers 31060, National Bureau of Economic Research, Inc.
    6. Marianne Bertrand, 2020. "Gender in the Twenty-First Century," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 1-24, May.
    7. Abi Adams-Prassl & Maria Balgova & Matthias Qian & Tom Waters, 2023. "Firm Concentration & Job Design: The Case of Schedule Flexible Work Arrangements," Economics Series Working Papers 1002, University of Oxford, Department of Economics.
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    Citations

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    Cited by:

    1. Huang, June & Lu, Shirley, 2025. "Gender diversity performance and voluntary disclosure: Mind the (gender pay) gap," Accounting, Organizations and Society, Elsevier, vol. 114(C).
    2. Bohacek, Radim & Myck, Michal, 2025. "Economic Consequences of Political Persecution (updated research)," IZA Discussion Papers 18282, Institute of Labor Economics (IZA).
    3. Bramucci, Francesca & Munoz Boudet, Ana Maria & Viollaz, Mariana, 2025. "Promoting Women’s Leadership : What Works, What Doesn’t, and What’s Missing," Policy Research Working Paper Series 11239, The World Bank.

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    More about this item

    Keywords

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    JEL classification:

    • 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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