Transparency and the gender pay gap

Summary

In "Transparency and the gender pay gap," Conley and Torbus (2018) explore the multifaceted relationship between pay transparency and the persistent gender pay gap (GPG), particularly within a European context. The authors contextualize their research by noting that much of the existing US literature on pay transparency originates from discussions around executive pay and high-low earner disparities, often linked to collective bargaining rights established by the National Labor Relations Act of 1935. However, their study shifts focus to the gender pay gap specifically, acknowledging transparency as a fundamental prerequisite for establishing pay equality. The methodology employed in the paper involves case studies of three European countries: Poland, the UK, and Italy. These nations present a diverse landscape in terms of industrial relations, legal systems, and the actual size of their gender pay gaps. For instance, while Poland has one of the lowest GPG indices in Europe, its situation regarding wage transparency is noted as suboptimal, with a 2016 survey revealing a significant disconnect between employer and employee perceptions of fair pay (73% of employers believed employees were justly paid, compared to only 36% of employees). The authors analyze current regulatory attempts in these case studies through the lens of legal theories, specifically reflexive and responsive legislation. This theoretical framework allows for an examination of how laws are designed to not only mandate certain behaviors but also to encourage organizations to self-regulate and adapt their practices to achieve gender pay equity. Despite the distinct national contexts, the study identifies "remarkable similarities" in approaches to pay transparency. The paper, part of the larger work "The Gender Pay Gap and Social Partnership in Europe," contributes to a broader understanding of how different national policy pressures and social partnership models influence the GPG. It emphasizes transparency's critical role in both raising awareness and driving concrete actions towards closing the gap.