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The Entirely Predictable Impact of Salary Transparency

HEC Paris - © Raw Pixel

Wired reports that, for the first time, a proposal aiming at implementing pay transparency and enforcing measures for all types of workers in EU member states was presented by the EU Commission to the EU Parliament and Council in March. “Firms are also wary of wages getting compressed and losing their best talent to competitors without transparency,” notes professor at HEC Paris Business School Tomasz Obloj. But this fear does not reflect reality. On the contrary, professor Obloj showed in a study that pay transparency can be particularly beneficial when it comes to reducing the gender pay gap.