The rise of pay transparency laws in the United States could change how the country’s employees negotiate their annual salaries in today’s rapidly changing labor market.
As truncation mount Given recession fears, the increased number of job seekers will see more positions open in states that have publicly listed mandated salary ranges.
colorado Became the first state to require public disclosure of pay ranges in 2021. now with jurisdiction Washington State, California and New York City have adopted similar mandatory public disclosure laws. These measures generally affect businesses with the least number of employees.
experts believe advent of these laws The wage could mark a turning point in the long-running fight for equity.
“When Colorado needed this, in the immediate result, there were some companies that tried to be a little cute and said in their postings, You can do this anywhere in the country except Colorado,” said Emily Martin, vice president of education and the workplace. ” Justice at the National Law Center for Women. “You can’t really do that when you have industry leaders like New York and California that require it.”
The rise of these pay transparency laws may increase wages for minorities and women, who may be paid less than their peers. The pay gap results from a number of factors including job preferences and inexplicable discrepancies.
But a growing body of research also says that the movement may reduce wage growth over time. “We found that people get paid less,” said Bobak Pakzad-Herson, assistant professor of economics and entrepreneurship at Brown University.
The nuances of increasing pay transparency are highlighted a Report Pakzad-Harson co-authored at the National Bureau of Economic Research, In an interview with CNBC, he said, “Is it worth squeezing? In some sense, I think we have to weigh these trade-offs.”
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