Scandinavian Working Papers in Economics

Working Papers,
Copenhagen Business School, Department of Economics

No 11-2022: Wage Transparency and The Gender Pay Gap: A Survey

Morten Bennedsen (), Birthe Larsen () and Jiayi Wei ()
Additional contact information
Morten Bennedsen: University of Copenhagen
Birthe Larsen: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Jiayi Wei: INSEAD

Abstract: We survey the small but growing literature on how wage transparency affects the pay gap between men and women in comparable jobs. Pay transparency reforms are implemented in many countries and we categorise these policy reforms according to their content and coverage. Evidence from Denmark, Canada, and UK document that transparency reforms causally reduce the gender wage gap. The main channel is through reducing the growth of male wages and less through increasing female wages. Finally, we discuss implementation costs related to the different categories of policy reforms.

Keywords: Wage Transparency; Gender Pay Gap; Policy Reforms

JEL-codes: J16; J31; J38

Language: English

23 pages, February 15, 2022

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