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Is French Gender Pay Gap Transparency Legislation Effective?

Author

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  • Vorster, Mia

    (University of Warwick)

Abstract

This paper examines the impact of France’s 2018 gender pay gap transparency law which implements a 100 point gender equity index and two corrective measure thresholds (firms below 85 must publish an action plan; those below 75 for three years are fined) for firms with more than 50 employees. I use firm-level reports with a regression discontinuity design and event-time study to assess the effectiveness of the thresholds in changing firm behaviour, finding evidence that firms improve their gender equity in order to avoid fines below the 75 threshold. I use an individual-level administrative dataset which I transform into a pseudopanel and a difference-in-difference strategy around the 50 employee threshold to assess the overall impact of the policy, finding a 3.7 percentage point increase in women’s hourly wages relative to men in treated firms. This effect is primary driven by a fall in male wages.

Suggested Citation

  • Vorster, Mia, 2026. "Is French Gender Pay Gap Transparency Legislation Effective?," Warwick-Monash Economics Student Papers 93, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:93
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/wmesp/manage/93-vorster.pdf
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    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • K38 - Law and Economics - - Other Substantive Areas of Law - - - Human Rights Law; Gender Law; Animal Rights Law

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