Do Workers Comply with Salary History Bans? A Survey on Voluntary Disclosure, Adverse Selection, and Unraveling
17 Pages Posted: 18 Feb 2020 Last revised: 25 May 2021
Date Written: January 19, 2020
Salary history bans forbid employers from asking job candidates to disclose their salaries. However, applicants can still volunteer this information. Our theoretical model predicts the effect of these laws varies by how workers comply. Our survey of Americans in the labor force finds candidates fall into three compliance types: 25% always disclose their salary whether asked or not, 17% never disclose, and 58% comply with the ban (disclosing only when asked). Importantly, compliance type varies by demographics (e.g. always-disclosers are more male, compliers are more female), and workers are more likely to disclose as others do the same, which suggests unraveling.
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