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Can transparency mandates reduce the gender wage gap? Firm size discontinuity evidence

Author

Listed:
  • Ana Melissa Ferreira
  • Pedro Brinca
  • João Duarte
  • João Pereira
  • Pedro Martins

Abstract

While pay transparency is an increasingly popular policy to reduce the gender wage gap (GWG), its effectiveness is still unclear. We evaluate the impact of a 2018 law in Portugal that required firms to assess their potential gender wage disparities, while imposing penalties to firms of 250 or more employees that did not correct or justify gender gaps. Using difference-in-difference-in-differences, regression discontinuity, and difference-in-discontinuity methods, together with detailed matched data, we find that the transparency reform had a minimal impact to reduced the GWG by around 1 percentage point (p.p.). These effects are particularly strong in firms that employ high-skilled females, and for employees that are not covered by collective bargaining, where the impacts rise to 1.5 p.p.. This effect is not associated with employment effects.

Suggested Citation

  • Ana Melissa Ferreira & Pedro Brinca & João Duarte & João Pereira & Pedro Martins, 2026. "Can transparency mandates reduce the gender wage gap? Firm size discontinuity evidence," Working Papers w202610, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:w202610
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    File URL: https://www.bportugal.pt/sites/default/files/documents/2026-08/WP202610.pdf
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    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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