Does Pay Transparency Affect the Gender Wage Gap? Evidence from Austria

Author:

Gulyas Andreas1,Seitz Sebastian2,Sinha Sourav3

Affiliation:

1. University of Mannheim (email: ).

2. University of Manchester and ZEW Mannheim (email: ).

3. Yale University (email: ).

Abstract

We study the 2011 Austrian pay transparency law, which requires firms above a size threshold to publish internal reports on the gender pay gap. Using an event-study design, we show that the policy had no discernible effects on male and female wages, thus leaving the gender wage gap unchanged. The effects are precisely estimated, and we rule out that the policy narrowed the gender wage gap by more than 0.4 p.p.. Moreover, we do not find evidence for wage compression within establishments. We discuss several possible reasons why the reform did not reduce the gender wage gap. (JEL J16, J31, J71, K31)

Publisher

American Economic Association

Subject

General Economics, Econometrics and Finance

Reference38 articles.

1. High Wage Workers and High Wage Firms

2. Arbeiterkammer. 2014. "Einkommensberichte - Erfahrung aus Sicht der BetriebsrätInnen." Arbeitskammer Online Publications.

3. Arbeitsmarktdatenbank. 2021. "Wages (hv_bmg), social security (hv_epi_stamm), workers information (hv_pn), establishments (hv_dg_konto)." https:// arbeitsmarktdatenbank. at/ index_ start. htm? userName= AMDBAMS1.

4. Babcock, Linda, and Sara Laschever. 2003. "Women Don't Ask: Negotiation and the Gender Divide." Princeton, NJ: Princeton University Press.

5. Baker, Michael, Yosh Halberstam, Kory Kroft, Alexandre Mas, and Derek Messacar. 2019. "Pay Transparency and the Gender Gap." NBER Working Paper 25834.

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