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The Ongoing Impact of Gender Pay Gap Transparency Legislation

Author

Listed:
  • Jones, Melanie K.

    (Cardiff University)

  • Kaya, Ezgi

    (Cardiff University)

  • Papps, Kerry L.

    (University of Bradford)

Abstract

This paper examines the ongoing impact of gender pay gap transparency legislation using a sudden COVID-19-induced temporary suspension to legislation in the UK. Compared to organisations that did not report during the suspension year, reporting organisations have a 6% lower gender pay gap a year later. This is driven by a relative increase in females in the top pay quartile at the same time as rising female concentration in the workforce overall. Further analysis supports the hypothesis that ongoing reporting is most effective in organisations with weaker pre-existing pressures to narrow their gender pay gap through female representation and voice.

Suggested Citation

  • Jones, Melanie K. & Kaya, Ezgi & Papps, Kerry L., 2022. "The Ongoing Impact of Gender Pay Gap Transparency Legislation," IZA Discussion Papers 15817, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15817
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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. 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.
    3. 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.
    4. Gamage, Danula K. & Kavetsos, Georgios & Mallick, Sushanta & Sevilla, Almudena, 2020. "Pay Transparency Initiative and Gender Pay Gap: Evidence from Research-Intensive Universities in the UK," IZA Discussion Papers 13635, Institute of Labor Economics (IZA).
    5. Jack Blundell, 2021. "Wage responses to gender pay gap reporting requirements," CEP Discussion Papers dp1750, Centre for Economic Performance, LSE.
    6. Nikolaos Theodoropoulos & John Forth & Alex Bryson, 2022. "Are Women Doing It for Themselves? Female Managers and the Gender Wage Gap," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(6), pages 1329-1355, December.
    7. Jonathan Roth, 2022. "Pretest with Caution: Event-Study Estimates after Testing for Parallel Trends," American Economic Review: Insights, American Economic Association, vol. 4(3), pages 305-322, September.
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    Cited by:

    1. Van Phan & Carl Singleton & Alex Bryson & John Forth & Felix Ritchie & Lucy Stokes & Damian Whittard, 2023. "Accounting for firms in gender-ethnicity wage gaps throughout the earnings distribution," Economics Discussion Papers em-dp2023-16, Department of Economics, University of Reading.

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    More about this item

    Keywords

    gender pay gap; pay transparency; equality legislation; COVID-19;
    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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