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The Impact of Pay Transparency in Job Postings on the Labor Market

Author

Listed:
  • David Arnold
  • Simon Quach
  • Bledi Taska

Abstract

This paper studies the labor market effects of recent state-level policies that require employers to disclose salary information in job postings. Leveraging a difference-in-differences design, we show that employers increased the fraction of postings with salary information by 30 percentage points. Across three datasets, we find consistent evidence of an increase in wages of 1.3-3.6%. We find no impacts on pay dispersion, employment, the number of postings, or skill and education requirements. Our evidence is consistent with pay transparency increasing competition in the labor market, leading to positive spillovers on incumbent workers and always-posting firms.

Suggested Citation

  • David Arnold & Simon Quach & Bledi Taska, 2025. "The Impact of Pay Transparency in Job Postings on the Labor Market," NBER Working Papers 34480, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:34480
    Note: LS
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    Cited by:

    1. Balgova, Maria & Tekleselassie, Tsegay & Hensel, Lukas & Witte, Marc J., 2025. "Wage Information and Applicant Selection," IZA Discussion Papers 18220, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • 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

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