The Influence of Pay Transparency on Inequity, Inequality, and the Performance-Basis of Pay in Organizations - HEC Paris - École des hautes études commerciales de Paris Access content directly
Preprints, Working Papers, ... Year :

The Influence of Pay Transparency on Inequity, Inequality, and the Performance-Basis of Pay in Organizations

Abstract

Recent decades have witnessed a growing focus on two distinct income patterns: persistent pay inequity, particularly a gender pay gap, and growing pay inequality. Pay transparency is widely advanced as a remedy for both. Yet we know little about the systemic influence of this policy on the evolution of pay practices within organizations. To address this void, we assemble a novel data set combining detailed performance, demographic and salary data for approximately 100,000 US academics between 1997 and 2017. We then exploit staggered shocks to wage transparency to explore how this change reshapes pay practices. We find evidence that pay transparency causes significant increases in both the equity and equality of pay, and significant and sizeable reductions in the link between pay and individually-measured performance.
No file

Dates and versions

hal-02896651 , version 1 (10-07-2020)

Identifiers

Cite

Tomasz Obloj, Todd Zenger. The Influence of Pay Transparency on Inequity, Inequality, and the Performance-Basis of Pay in Organizations. 2020. ⟨hal-02896651⟩

Collections

HEC CNRS
66 View
0 Download

Altmetric

Share

Gmail Facebook Twitter LinkedIn More