3 ms·

How does everyone lose? It seems to me that people worse at negotiating are set to win in this case...

• pseudo0 3y ago
  Pay transparency measures were touted to reduce the "negotiation gap" but ended up undermining the bargaining power of individual workers, so I would be wary of unintended consequences. > Our model predicts that transparency reduces the individual bargaining power of workers, leading to lower average wages. A key insight is that employers credibly refuse to pay high wages to any one worker to avoid costly renegotiations with others under transparency. https://www.nber.org/papers/w28903 https://www.nber.org/papers/w28903
  • Certhas 3y ago
    If only there was a way to address the structural power imbalance in the negotiations between employers and employees....