The Economics Show  cover image

The Economics Show

Does pay transparency work? With Zoe Cullen and Pilita Clark

Jun 24, 2024
Harvard professor Zoe Cullen and FT columnist Pilita Clark discuss the benefits and risks of pay transparency. They explore how different types of transparency can impact gender pay equality and workplace dynamics. The podcast also examines the impact of pay transparency on job advertisements and analyzes studies on its effectiveness in addressing pay disparities.
26:34

Podcast summary created with Snipd AI

Quick takeaways

  • Horizontal pay transparency addresses gender disparities in pay but faces challenges in interpretation and implementation.
  • Vertical pay transparency motivates employees by revealing higher-ranking salaries and improving understanding of salary growth trajectories.

Deep dives

Horizontal Pay Transparency: Revealing Pay Disparities Within Companies

Horizontal pay transparency involves disclosing pay discrepancies among colleagues within the same firm. This form of transparency, seen in laws like the UK's gender pay gap reporting, aims to address gender disparities in pay. While it was expected to reduce the gender pay gap, actual impact has been slower. Challenges arise in interpreting the data due to varying factors affecting pay, potentially leading to unintended consequences and rigid pay structures.

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