Why Everyone Is Openly Talking About Pay
Increasingly popular pay transparency laws benefit some workers and increase social equity, but economists warn they could diminish the negotiating power of the labor force at large.
Colorado became the first state to require public disclosures of salary ranges in 2021. Now jurisdictions including Washington state, California, and New York City have taken up similar mandatory public disclosure laws. These measures typically affect businesses with at least a small number of employees.
But a growing body of research also says that the movement could dampen wage growth over time. "What we found is that people get smaller raises," said Bobak Pakzad-Hurson, an assistant professor of economics and entrepreneurship at Brown University.
Watch the video above to learn more about the rise and potential implications of pay transparency.
Produced by: Carlos Waters
Supervising Producer: Lindsey Jacobson
Graphics by: Christina Locopo
Additional sources: U.S. Equal. Employment Opportunity Commission, Federal Reserve Bank of New York
Tue, 24 Jan 2023 17:00:06 GMT