New York Times: Want to Close the Pay Gap? Pay Transparency Will Help

By Kristin Wong

20 January 2019

Here’s what we know about salary transparency: Workers are more motivated when salaries are transparent. They work harder, they’re more productive, and they’re better at collaborating with colleagues. Across the board, pay transparency seems to be a good thing.

Transparency isn’t just about business bottom line, however. Researchers say transparency is important because keeping salaries secret reinforces discrimination.

“From a worker’s perspective, without accurate information about peer compensation, they may not know when they’re being underpaid,” said Emiliano Huet-Vaughn, an economist at U.C.L.A. who ran a study in 2013 that found workers are more productive when salary is transparent. Without knowing what other workers’ salaries look like, “it naturally becomes harder to make the case that one is suffering a form of pay discrimination,” Dr. Huet-Vaughn said.

Read the full article in The New York Times.