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Organisational Gender Pay Gaps in the UK: What Happened Post-transparency?

Author

Listed:
  • Jones, Melanie K.

    (Cardiff University)

  • Kaya, Ezgi

    (Cardiff University)

Abstract

Since April 2017 UK employers with over 250 employees have been required to publicly report their gender pay gap each year. We exploit this recent source of panel data on employer-level gender pay gaps to provide new insights for the established literature on the gender pay gap based predominately on employee information. More specifically, we explore the factors associated with changing organisational gender pay gaps in the period immediately following transparency. Consistent with information, reflection and pressure brought by the legislation, we find greater narrowing of gender pay gaps in organisations with a larger initial gender pay gap. Moreover, this relationship is magnified over time, consistent with gradual and longer-term adjustment. We further find evidence that interorganisational comparisons matter. For organisations with higher gender pay gaps than the average of their intra-industry comparators, lower comparator gender pay gaps are associated with further narrowing, suggesting relative comparisons enabled by transparency per se provide a channel through which the impact of the legislation operates.

Suggested Citation

  • Jones, Melanie K. & Kaya, Ezgi, 2022. "Organisational Gender Pay Gaps in the UK: What Happened Post-transparency?," IZA Discussion Papers 15342, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp15342
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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.
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    10. Emma Duchini & Stefania Simion & Arthur Turrell & Jack Blundell, 2020. "Pay Transparency and Gender Equality," Papers 2006.16099, arXiv.org, revised Dec 2022.
    11. 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.
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    14. Melanie Jones & Gerry Makepeace & Victoria Wass, 2018. "The UK Gender Pay Gap 1997–2015: What Is the Role of the Public Sector?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(2), pages 296-319, April.
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    Cited by:

    1. Melanie Jones & Ezgi Kaya, 2023. "The UK gender pay gap: Does firm size matter?," Economica, London School of Economics and Political Science, vol. 90(359), pages 937-952, July.
    2. Bennedsen, Morten & Larsen, Birthe & Wei, Jiayi, 2022. "Wage Transparency and the Gender Pay Gap: A Survey," Working Papers 17-2022, Copenhagen Business School, Department of Economics.

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    More about this item

    Keywords

    gender pay gap; pay transparency; equality legislation;
    All these keywords.

    JEL classification:

    • 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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