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Wage Transparency Doesn't Fix Gender Pay Gaps

male and female in business attire

Bad headlines about a company's gender pay gap are temporary, which could make long-term structural changes difficult.

While some policy-makers see mandated wage transparency as a contributor to progress on gender pay gaps, new research suggests otherwise.

A study published in Administrative Science Quarterly suggests that naming and shaming companies on compensation is not effective in changing employee attitudes, and that policy-makers may need to try a different tact to achieve long-term structural change.

Organizations with pay parity received a temporary boost in employee evaluations when that information was made public, the study finds. But organizations with large pay gaps received no negative response when their information is made public.

The study also notes that many still view gender pay gaps explainable and therefore acceptable or fair. 

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