IDEAS home Printed from https://ideas.repec.org/a/eee/bushor/v60y2017i4p529-539.html
   My bibliography  Save this article

The new age of pay transparency

Author

Listed:
  • Trotter, Richard G.
  • Zacur, Susan Rawson
  • Stickney, Lisa T.

Abstract

A new age of pay transparency began on January 11, 2016, when Executive Order 13665 took effect. Applying to employers who have contracts valued over $10,000 with the U.S. government, the order prohibits them from retaliating against employees for disclosure and discussion of compensation information. This effectively increases pay transparency for an estimated 20% (28 million workers) of the labor force. As a result, the difference in pay between men and women and between white and minority employees is now under increased scrutiny. This article aids employers in this new era of heightened attention to their compensation practices. We begin with an overview of the current dimensions of pay gaps in the U.S., providing a societal level perspective. Pay transparency is emphasized as a means to help narrow earnings gaps at the firm level. Legal, regulatory, and social aspects of pay disclosure are discussed and employers currently using pay transparency are highlighted. We also present management responsibilities and practices for the new age of pay transparency.

Suggested Citation

  • Trotter, Richard G. & Zacur, Susan Rawson & Stickney, Lisa T., 2017. "The new age of pay transparency," Business Horizons, Elsevier, vol. 60(4), pages 529-539.
    • Handle: RePEc:eee:bushor:v:60:y:2017:i:4:p:529-539
    DOI: 10.1016/j.bushor.2017.03.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0007681317300356
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.bushor.2017.03.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Markus M. Mobius & Tanya S. Rosenblat, 2006. "Why Beauty Matters," American Economic Review, American Economic Association, vol. 96(1), pages 222-235, March.
    2. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    3. Ma, Anyi & Kay, Aaron C., 2017. "Compensatory control and ambiguity intolerance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 140(C), pages 46-61.
    4. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-1194, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Srikant Devaraj & Pankaj C. Patel, 2022. "State bans on pay secrecy and earnings: Evidence from the National Longitudinal Survey of Youth 1997," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 697-734, December.
    2. Michael Baker & Yosh Halberstam & Kory Kroft & Alexandre Mas & Derek Messacar, 2023. "Pay Transparency and the Gender Gap," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 157-183, April.
    3. Matthew Caulfield, 2021. "Pay Secrecy, Discrimination, and Autonomy," Journal of Business Ethics, Springer, vol. 171(2), pages 399-420, June.
    4. Shang, Longfei & Saffar, Walid, 2024. "Pay transparency and entrepreneurship," Journal of Banking & Finance, Elsevier, vol. 162(C).
    5. Uka Ana & Prendi Ardita, 2021. "Motivation as an indicator of performance and productivity from the perspective of employees," Management & Marketing, Sciendo, vol. 16(3), pages 268-285, September.
    6. Agnieszka Barczak & Izabela Dembińska & Tomasz Rostkowski & Katarzyna Szopik-Depczyńska & Dorota Rozmus, 2021. "Structure of Remuneration as Assessed by Employees of the Energy Sector—Multivariate Correspondence Analysis," Energies, MDPI, vol. 14(22), pages 1-16, November.
    7. Heisler, William, 2021. "Increasing pay transparency: A guide for change," Business Horizons, Elsevier, vol. 64(1), pages 73-81.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. LIU Xing & SIERMINSKA Eva, 2014. "Evaluating the effect of beauty on labor market outcomes: A review of the literature," LISER Working Paper Series 2014-11, Luxembourg Institute of Socio-Economic Research (LISER).
    2. Peng, Langchuan & Wang, Xi & Ying, Shanshan, 2020. "The heterogeneity of beauty premium in China: Evidence from CFPS," Economic Modelling, Elsevier, vol. 90(C), pages 386-396.
    3. Deng, Weiguang & Li, Dayang & Zhou, Dong, 2019. "Beauty and Job Accessibility: New Evidence from a Field Experiment," GLO Discussion Paper Series 369, Global Labor Organization (GLO).
    4. von Hinke Kessler Scholder S, 2009. "Genetic Markers as Instrumental Variables: An Application to Child Fat Mass and Academic Achievement," Health, Econometrics and Data Group (HEDG) Working Papers 09/25, HEDG, c/o Department of Economics, University of York.
    5. Li, Xilin & Hsee, Christopher K., 2021. "Free-riding and cost-bearing in discrimination," Organizational Behavior and Human Decision Processes, Elsevier, vol. 163(C), pages 80-90.
    6. Parrett, Matt, 2015. "Beauty and the feast: Examining the effect of beauty on earnings using restaurant tipping data," Journal of Economic Psychology, Elsevier, vol. 49(C), pages 34-46.
    7. Niclas Berggren & Henrik Jordahl & Panu Poutvaara, 2010. "The Right Look: Conservative Politicians Look Better and their Voters Reward it," CESifo Working Paper Series 3310, CESifo.
    8. Amy King & Andrew Leigh, 2009. "Beautiful Politicians," Kyklos, Wiley Blackwell, vol. 62(4), pages 579-593, November.
    9. Daniel Hamermesh, 2012. "Tall or taller, pretty or prettier: is discrimination absolute or relative?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-17, December.
    10. Dechter, Evgenia Kogan, 2015. "Physical appearance and earnings, hair color matters," Labour Economics, Elsevier, vol. 32(C), pages 15-26.
    11. Suyong Song & Stephen S. Baek, 2019. "Shape Matters: Evidence from Machine Learning on Body Shape-Income Relationship," Papers 1906.06747, arXiv.org.
    12. Han, Euna & Norton, Edward C. & Powell, Lisa M., 2011. "Direct and indirect effects of body weight on adult wages," Economics & Human Biology, Elsevier, vol. 9(4), pages 381-392.
    13. Rees, Daniel I. & Sabia, Joseph J. & Argys, Laura M., 2009. "A head above the rest: Height and adolescent psychological well-being," Economics & Human Biology, Elsevier, vol. 7(2), pages 217-228, July.
    14. Elif S. Filiz, 2022. "Does it Payoff to be Blond in a Non-Blond Neighborhood? Eye Color, Hair Color, Ethnic Composition and Starting Wages," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(1), pages 122-146, January.
    15. Gregor Schwerhoff & Ottmar Edenhofer & Marc Fleurbaey, 2020. "Taxation Of Economic Rents," Journal of Economic Surveys, Wiley Blackwell, vol. 34(2), pages 398-423, April.
    16. Mingfeng Lin & Nagpurnanand R. Prabhala & Siva Viswanathan, 2013. "Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-to-Peer Lending," Management Science, INFORMS, vol. 59(1), pages 17-35, August.
    17. Abigail Weitzman & Dalton Conley, 2014. "From Assortative to Ashortative Coupling: Men's Height, Height Heterogamy, and Relationship Dynamics in the United States," NBER Working Papers 20402, National Bureau of Economic Research, Inc.
    18. Helmut Dietl & Anil Özdemir & Andrew Rendall, 2018. "The Role of Physical Attractiveness in Tennis TV-Viewership," Working Papers 376, University of Zurich, Department of Business Administration (IBW).
    19. Weilong Bi & Ho Fai Chan & Benno Torgler, 2020. "“Beauty” premium for social scientists but “unattractiveness” premium for natural scientists in the public speaking market," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-9, December.
    20. Eleonora Patacchini & Giuseppe Ragusa & Yves Zenou, 2015. "Unexplored dimensions of discrimination in Europe: homosexuality and physical appearance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 1045-1073, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bushor:v:60:y:2017:i:4:p:529-539. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/bushor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.