4 ms·
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
by 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 agoIf only there was a way to address the structural power imbalance in the negotiations between employers and employees....