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Gender pay gap shrinks when companies disclose wages

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Re: Gender pay gap shrinks when companies disclose wages

#12
post #9
post #4

Earlier quoted context omitted.

I'm not sure how else they would behave. Increasing the salaries of all the women would be like admitting to discrimination, wouldn't it? Edit: I mean that instantly increasing the salaries would be like an admission.

How does depressing men's wages not do the same?

There is a material difference between "paying too much" and "not paying enough". Clearly they want to be on the former side and not the latter.

Re: Gender pay gap shrinks when companies disclose wages

#13
post #7
post #3

Conclusions that the companies hired more women because of it are a bit weird to draw since every company that would be a comparison in the country also has to follow the same rules? And ofc it's solved by lowering the growth of male wages :D Business

No, they were comparing companies that didn't need to follow the regulation (companies with 24-34 employees) with companies that did (35+ employees). Of course, the problem with this is twofold: 1. Companies with 2. Companies with 35 employees. I do not think that variable was accounted for in any way by the study and that is problematic.

Over 80% of all companies in the USA have fewer than 35 employees

https://www.naics.com/business-lists/counts-by-company-size/

i agree with your point #2

the differences between large and small companies are significant enough to outweigh the causal relationship that the OP implies

Re: Gender pay gap shrinks when companies disclose wages

#14
post #9
post #4

Earlier quoted context omitted.

I'm not sure how else they would behave. Increasing the salaries of all the women would be like admitting to discrimination, wouldn't it? Edit: I mean that instantly increasing the salaries would be like an admission.

How does depressing men's wages not do the same?

They're not "depressing men's wages" -- just giving them lower raises. No one's salary suddenly went down.

If you've been underpaying women in a discriminatory way while pretending to be a meritocracy, the real fix is to pay women more.

But if you suddenly raise salaries for all the women, it proves you were never a meritocracy.

To keep up your pretense while also fixing your mistakes, your only option is to slow raises in order to restore fairness over time -- which is what they did.

The third option would be to reduce men's salaries, which of course wouldn't be possible.

Re: Gender pay gap shrinks when companies disclose wages

#15
post #2

I found this to be really interesting: "The researchers were especially surprised by the way in which the companies adapted to the regulation – by slowing the growth of men’s wages, not increasing women’s."

A pair of scissors labeled "cynicism and greed" poised to shear the head off a crustacean labeled "meaningful societal advancement."

Re: Gender pay gap shrinks when companies disclose wages

#16
post #2

I found this to be really interesting: "The researchers were especially surprised by the way in which the companies adapted to the regulation – by slowing the growth of men’s wages, not increasing women’s."

Did the researchers measure employee departures? If wages stagnated in general, then one would expect that employees who are more desirable/mobile to depart. This would make it seem like wage equality went up, when in reality the people who were previously making more are still doing so — they're just doing it at a different company.

Re: Gender pay gap shrinks when companies disclose wages

#17
post #7

Earlier quoted context omitted.

No, they were comparing companies that didn't need to follow the regulation (companies with 24-34 employees) with companies that did (35+ employees). Of course, the problem with this is twofold: 1. Companies with 2. Companies with 35 employees. I do not think that variable was accounted for in any way by the study and that is problematic.

Over 80% of all companies in the USA have fewer than 35 employees https://www.naics.com/business-lists/counts-by-company-size/ i agree with your point #2 the differences between large and small companies are significant enough to outweigh the causal relationship that the OP implies

I think he was referring to the relative number of workers at companies with more/less than 35 employees. Clearly the average worker, by a large margin, works at companies with 50 or more employees. Even more so when you don't include whatever proportion of businesses counted that are essentially self-employment.

Re: Gender pay gap shrinks when companies disclose wages

#18
post #2

I found this to be really interesting: "The researchers were especially surprised by the way in which the companies adapted to the regulation – by slowing the growth of men’s wages, not increasing women’s."

It seems like a given outcome, to me.

Suppose that half of your workforce makes 60% of the wages, and the other half make 40%. Suddenly, PR dictates that you need to even that out.

Your budget for salaries hasn't increased. Your other costs haven't decreased. Your projected revenues haven't increased. The money to bump the bottom half up has to come from somewhere, and with a fixed salary budget, it comes from the other half's expected raises and new hires.

Unless, of course, you have the flexibility to start rewriting all of your budgets, but that still hasn't changed the fact that both revenues and all other costs remain fixed.

Re: Gender pay gap shrinks when companies disclose wages

#19
post #5

I couldn't find an N of the study. It seems important to me in order to ascertain the statistical significance of this. Were there 10 companies in one group? 100? 1000? Did anyone else see this in the study?

Based on table 1, it was probably about 4000 companies and 66000 employees total.

Re: Gender pay gap shrinks when companies disclose wages

#20
Not just gender I think. I witness over and over how employees one day realize they were underpaid and get paid immediately. Including myself. Sometimes the company asks the employee to keep it silent so the other ones won't do the same. This is ofcourse unhealthy situation, and too common. You got to win your rights manually.
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