2015
DOI: 10.1111/irel.12109
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Pay Secrecy and the Gender Wage Gap in the United States

Abstract: Legislators and advocates claim that pay secrecy perpetuates the gender wage gap and that the Fair Labor Standards Act (FLSA) should be amended to outlaw these practices. Using a difference‐in‐differences fixed‐effects human‐capital wage regression, I find that women with higher education levels who live in states that have outlawed pay secrecy have higher earnings, and that the wage gap is consequently reduced. State bans on pay secrecy and federal legislation to amend the FLSA to allow workers to share infor… Show more

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Cited by 45 publications
(49 citation statements)
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“…The gender wage gap is likely to persist and be legitimated if women do not claim the same wages as men (Avent-Holt & Tomaskovic-Devey, 2014; Johnson et al., 2006). One solution to the problem of the contented female worker could be wage transparency (also see Castilla, 2015; Kim, 2015). Women who compare themselves to other women might not be aware of a gender wage inequality in their occupation.…”
Section: Resultsmentioning
confidence: 99%
“…The gender wage gap is likely to persist and be legitimated if women do not claim the same wages as men (Avent-Holt & Tomaskovic-Devey, 2014; Johnson et al., 2006). One solution to the problem of the contented female worker could be wage transparency (also see Castilla, 2015; Kim, 2015). Women who compare themselves to other women might not be aware of a gender wage inequality in their occupation.…”
Section: Resultsmentioning
confidence: 99%
“…Evaluators’ understanding that what they do will be observable to others is likely to put them on notice and increase efforts to make a good impression (Mero, Guidice, & Brownlee, 2007), mitigating against the use of expectations in making judgments. Furthermore, salaries themselves could be made visible to anyone in the organization—a practice that has been recommended as a way of reducing the gender wage gap (Kim, 2015).…”
Section: Strategiesmentioning
confidence: 99%
“…There are multiple ways in which a lack of pay clarity has been found to be especially damaging for women. Pay secrecy is often associated with gender wage disparities (Colella et al., 2007; Kim, 2015). Lack of openness about pay is often connected with sexual harassment and verbal abuse, as all three are associated with undervaluing workers and exerting power over others (Lim & Cortina, 2005; O'Leary‐Kelly, Paetzold, & Griffin, 2000; Popovich & Warren, 2010).…”
Section: Pay Claritymentioning
confidence: 99%