Do Firms Respond to Gender Pay Gap Transparency?
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Do Firms Respond to Gender Pay Gap Transparency? / Bennedsen, Morten; Simintzi, Elena; Tsoutsoura, Margarita; Wolfenzon, Daniel.
I: Journal of Finance, Bind 77, Nr. 4, 08.2022, s. 2051-2091.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Do Firms Respond to Gender Pay Gap Transparency?
AU - Bennedsen, Morten
AU - Simintzi, Elena
AU - Tsoutsoura, Margarita
AU - Wolfenzon, Daniel
N1 - Publisher Copyright: © 2022 the American Finance Association.
PY - 2022/8
Y1 - 2022/8
N2 - We examine the effect of pay transparency on the gender pay gap and firm outcomes. Using a 2006 legislation change in Denmark that requires firms to provide gender-disaggregated wage statistics, detailed employee-employer administrative data, and difference-in-differences and difference-in-discontinuities designs, we find that the law reduces the gender pay gap, primarily by slowing wage growth for male employees. The gender pay gap declines by 2 percentage points, or 13% relative to the prelegislation mean. Despite the reduction of the overall wage bill, the wage transparency mandate does not affect firm profitability, likely because of the offsetting effect of reduced firm productivity.
AB - We examine the effect of pay transparency on the gender pay gap and firm outcomes. Using a 2006 legislation change in Denmark that requires firms to provide gender-disaggregated wage statistics, detailed employee-employer administrative data, and difference-in-differences and difference-in-discontinuities designs, we find that the law reduces the gender pay gap, primarily by slowing wage growth for male employees. The gender pay gap declines by 2 percentage points, or 13% relative to the prelegislation mean. Despite the reduction of the overall wage bill, the wage transparency mandate does not affect firm profitability, likely because of the offsetting effect of reduced firm productivity.
U2 - 10.1111/jofi.13136
DO - 10.1111/jofi.13136
M3 - Journal article
AN - SCOPUS:85131196148
VL - 77
SP - 2051
EP - 2091
JO - The Journal of Finance
JF - The Journal of Finance
SN - 0022-1082
IS - 4
ER -
ID: 346785310