University of North Carolina at Chapel Hill
Kenan-Flagler Business School
Chapel Hill, NC
Institutional Affiliation: University of North Carolina at Chapel Hill
NBER Working Papers and Publications
|January 2019||Do Firms Respond to Gender Pay Gap Transparency?|
with Morten Bennedsen, Margarita Tsoutsoura, Daniel Wolfenzon: w25435
We examine the effect of pay transparency on gender pay gap and firm outcomes. This paper exploits a 2006 legislation change in Denmark that requires firms to provide gender dis-aggregated wage statistics. Using detailed employee-employer administrative data and a difference-in-differences approach, we find that the law reduces the gender pay gap, primarily by slowing the wage growth for male employees. The gender pay gap declines by approximately two percentage points, or a 7% reduction relative to the pre-legislation mean. In addition, the wage transparency mandate causes a reduction in firm productivity and in the overall wage bill, leaving firm profitability unchanged.
|January 2015||Wage Inequality and Firm Growth|
with Holger M. Mueller, Paige P. Ouimet: w20876
We examine how within-firm skill premia–wage differentials associated with jobs involving different skill requirements–vary both across firms and over time. Our firm-level results mirror patterns found in aggregate wage trends, except that we find them with regard to increases in firm size. In particular, we find that wage differentials between high- and either medium- or low-skill jobs increase with firm size, while those between medium- and low-skill jobs are either invariant to firm size or, if anything, slightly decreasing. We find the same pattern within firms over time, suggesting that rising wage inequality–even nuanced patterns, such as divergent trends in upper- and lower-tail inequality–may be related to firm growth. We explore two possible channels: i) wages associated with “r...
Published: Holger M. Mueller & Paige P. Ouimet & Elena Simintzi, 2017. "Wage Inequality and Firm Growth," American Economic Review, vol 107(5), pages 379-383.