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For a European person, I wonder if our fellow Americans would bother helping understand the rationale of such laws...?

lesuorac 3y ago
Typically the highest paid labourers are all people with relatively transparent salaries. - CEOs - Athletes Also things with salary transparency (i.e. Unions / Guilds) results in hirer wages for their members compared to similar workers without the things. It's also in line between with the basic principals of capitalism. The basic supply-demand graph assumes perfect information which is obviously not true when a job-seeker doesn't know the salary of a job they're seeking so you'll end up with mismatches in the job-supply and job-demand.
- sdfghswe 3y ago
  Ok so the rationale for such laws is to help employees get paid more?
  - lesuorac 3y ago
    I'm not sure it should be phrased that way. The rationale for such laws is to ensure an efficient allocation of labor. An expected side-effect of efficient allocation is higher wages as employees take the best paying job they're suited for but it's not like the point of the law is to make McDonalds pay 25$/h for a fryer. > [1] The legislation underscores New York's commitment to addressing wage disparities and promoting transparency in compensation practices across the state. It ensures that employees have access to vital compensation information, and empowering them to make informed decisions about their careers. [1]: https://dol.ny.gov/pay-transparency https://dol.ny.gov/pay-transparency
    - sdfghswe 3y ago
      Ok thanks for this.
ZoomerCretin 3y ago
Our labor market is completely different. There is no loyalty between employee and employer anymore, so job switching is far more frequent here. The hiring culture is similarly bonkers: you have to apply to dozens or hundreds of jobs to get a callback, even when unemployment is low and employers are whining to anyone who will listen that it's hard to find workers, even for low-wage restaurant and retail positions. Employers take a long time (days, weeks, months) to get back to you, they interview you multiple times, and they ghost you entirely at every stage of the process. Imagine going through this, just to be told "You're hired, and the wage is $x/hour", where x is far less than you make now or would need to pay rent. Salary transparency laws are necessary because workers, especially lower-wage workers, have finite time and cannot go through this process and receive multiple offers. Employers can hold out for desperate workers, but workers need to eat and pay rent, and are thus forced to take what they can get. In this hiring culture, lower-wages workers are often forced to work for far less than they could otherwise get because of the high time and effort cost of finding better paying work.
- sdfghswe 3y ago
  Ok thank you for this.
altdataseller 3y ago
There's a similar salary transparency law heading to the EU in a few years too. https://www.consilium.europa.eu/en/policies/pay-transparency/ https://www.consilium.europa.eu/en/policies/pay-transparency...

Typically the highest paid labourers are all people with relatively transparent salaries. - CEOs - Athletes Also things with salary transparency (i.e. Unions / Guilds) results in hirer wages for their members compared to similar workers without the things. It's also in line between with the basic principals of capitalism. The basic supply-demand graph assumes perfect information which is obviously not true when a job-seeker doesn't know the salary of a job they're seeking so you'll end up with mismatches in the job-supply and job-demand.

sdfghswe 3y ago
Ok so the rationale for such laws is to help employees get paid more?
- lesuorac 3y ago
  I'm not sure it should be phrased that way. The rationale for such laws is to ensure an efficient allocation of labor. An expected side-effect of efficient allocation is higher wages as employees take the best paying job they're suited for but it's not like the point of the law is to make McDonalds pay 25$/h for a fryer. > [1] The legislation underscores New York's commitment to addressing wage disparities and promoting transparency in compensation practices across the state. It ensures that employees have access to vital compensation information, and empowering them to make informed decisions about their careers. [1]: https://dol.ny.gov/pay-transparency https://dol.ny.gov/pay-transparency
  - sdfghswe 3y ago
    Ok thanks for this.

ZoomerCretin 3y ago

Our labor market is completely different. There is no loyalty between employee and employer anymore, so job switching is far more frequent here. The hiring culture is similarly bonkers: you have to apply to dozens or hundreds of jobs to get a callback, even when unemployment is low and employers are whining to anyone who will listen that it's hard to find workers, even for low-wage restaurant and retail positions. Employers take a long time (days, weeks, months) to get back to you, they interview you multiple times, and they ghost you entirely at every stage of the process. Imagine going through this, just to be told "You're hired, and the wage is $x/hour", where x is far less than you make now or would need to pay rent. Salary transparency laws are necessary because workers, especially lower-wage workers, have finite time and cannot go through this process and receive multiple offers. Employers can hold out for desperate workers, but workers need to eat and pay rent, and are thus forced to take what they can get. In this hiring culture, lower-wages workers are often forced to work for far less than they could otherwise get because of the high time and effort cost of finding better paying work.

sdfghswe 3y ago
Ok thank you for this.

altdataseller 3y ago

There's a similar salary transparency law heading to the EU in a few years too. https://www.consilium.europa.eu/en/policies/pay-transparency/ https://www.consilium.europa.eu/en/policies/pay-transparency...