Information and the Persistence of the Gender Wage Gap; Early Evidence from California's Salary History Ban

61 Pages Posted: 14 Nov 2018 Last revised: 15 May 2019

Date Written: February 1, 2019

Abstract

Reductions in wage disparities across race and gender have stagnated in the recent decades. Recent popular focus on these inequalities has led to demands for policy interventions to reduce pay gaps. The most recent legislation intended to improve wage equality prohibits employers from asking about previously earned salaries. The intent of this legislation is to redress persistent pay inequalities. Salary history bans (SHBs) have been implemented in varying degrees (public and private) in multiple cities and states. I use a synthetic control approach to measure the impact of a statewide SHB in California. After the passing of a statewide SHB, statewide female-male earnings ratios increased from 0.77 (where they have been stagnant for the last 12 years) to 0.81. Moreover, I find these results are driven by an increase of the earnings ratio in male-dominated industries.

JEL Classification: J7, J78

Suggested Citation

McNichols, Drew, Information and the Persistence of the Gender Wage Gap; Early Evidence from California's Salary History Ban (February 1, 2019). Available at SSRN: https://ssrn.com/abstract=3277664 or http://dx.doi.org/10.2139/ssrn.3277664

Drew McNichols (Contact Author)

University of Oregon ( email )

Eugene, OR 97403
United States
5415564953 (Phone)

HOME PAGE: http://www.drewmcnichols.com/

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