3 ms·
It's all about information asymmetry. The employers have information you don't so you can't use that information to your advantage in negotiations. They really
by nommm-nommm 10y ago
It's all about information asymmetry. The employers have information you don't so you can't use that information to your advantage in negotiations. They really don't want that information to get out so they can continue to push salaries lower.
The only reason they want to keep that information private is to use it to their advantage.
I believe, last time I researched this topic, is that transparent salaries tend to increase pay across the board and make pay more performance based rather than negotiating skills based.
EDIT:
http://economics.usf.edu/PDF/Asymetric%20Information%20Porter%20Kamp.pdf http://economics.usf.edu/PDF/Asymetric%20Information%20Porte...
> Beginning in 1989 the National
Hockey League Players’ Association began annually to reveal the salaries of all its members. Over the next five seasons as contracts were renegotiated wages rose precipitously. Over the same period the role of player performance in determining wages gained importance while the identity of the team with which they negotiated lost all
significance.