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Can gender Pay-Gap disclosures make a difference?

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  • Abudy, Menachem (Meni)
  • Aharon, David Y.
  • Shust, Efrat

Abstract

The United Kingdom passed the UK-Equality-Act-2010 in 2017, mandating public and private firms to disclose their gender pay gap (GPG). To evaluate the effectiveness of this regulation, we examine whether the effect of the disclosure rule led to any change in male and female pay differences. Our analysis reveals that the GPG disclosure has reduced the pay gap over time since the Equality Act was introduced. The results hold for different regression specifications and after controlling for industry-fixed effects. The findings may suggest a possible channel through which policymakers can reduce gender disparities and improve corporations’ social responsibility conduct.

Suggested Citation

  • Abudy, Menachem (Meni) & Aharon, David Y. & Shust, Efrat, 2023. "Can gender Pay-Gap disclosures make a difference?," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007590
    DOI: 10.1016/j.frl.2022.103583
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    References listed on IDEAS

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    More about this item

    Keywords

    Gender Pay Gap; UK Equality Act; Female Pay; Disclosure; Labour Participation;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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