How to close the gender pay gap: Transparency in data regarding compensation is the key

Summary

J.A. Morgan's 2019 research paper, "How to close the gender pay gap: Transparency in data regarding compensation is the key," asserts that enhanced transparency in compensation data for both men and women is fundamental to identifying and ultimately rectifying the gender pay gap. The paper provides a multi-faceted analysis, beginning with a detailed discussion of existing equal pay laws in the United States, an examination of current U.S. gender pay gap data, and a review of various theories attempting to explain these disparities. A core argument throughout the article is that greater transparency is necessary to provide clarity on the underlying reasons for the pay gap. A significant aspect of Morgan's work involves a comprehensive discussion of the new equal pay legislation in the United Kingdom. Specifically, the paper focuses on the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017, which mandate that UK employers with 250 or more employees publicly report their gender pay gap data on an annual basis. Morgan analyzes how the implementation of these transparency-focused regulations in the UK has contributed to a reduction in its gender pay gap, presenting the UK's experience as a practical and effective roadmap for other nations, particularly the United States, to consider and potentially adopt. The article also expands its scope to include a global perspective on the gender pay gap, exploring how different countries have addressed this issue through increased transparency. The methodology of the paper is primarily a comparative legal and policy review, synthesizing existing legal frameworks, national data, and theoretical explanations rather than presenting new empirical research. The findings from the paper and supporting evidence emphasize the tangible benefits of mandatory pay transparency regulations. Data indicates that these regulations have influenced the overall gender pay gap, with studies suggesting that gender pay gap reporting can lead to a decrease in the mean organizational hourly gender pay gap. For example, pay transparency in the UK has been shown to close a significant portion of the gender pay gap, partly by impacting men's pay growth. The implication is that public disclosure not only raises awareness among employers and employees but also acts as a catalyst, compelling organizations to actively address and reduce existing pay disparities. Morgan's research ultimately advocates for transparency as a crucial tool for fostering accountability and accelerating progress toward achieving gender pay equality globally.