Pay Transparency Initiative and Gender Pay Gap: Evidence from Research-Intensive Universities in the UK

37 Pages Posted: 31 Aug 2020

See all articles by Danula Daksith Kankanam Gamage

Danula Daksith Kankanam Gamage

Queen Mary University of London

Georgios Kavetsos

Queen Mary University of London

Sushanta Mallick

affiliation not provided to SSRN

Almudena Sevilla

Queen Mary, University of London

Abstract

Given the ongoing efforts to close the gender pay gap across different sectors in the UK, this paper investigates the impact of a pay transparency initiative on the gender pay gap in the university sector, focusing on the Russell Group of top-tier universities. The initiative, introduced in 2007, enabled public access to mean salaries of men and women in UK universities. Using a rich individual-level administrative dataset and a difference-in-differences approach comparing men and women, we document several key findings. First, following the pay transparency intervention, the log of salaries of female academics increased by around 0.62 percentage points compared to male counterparts, reducing the gender pay gap by 4.37%. The effect is more pronounced considering a balanced sample (1.27 percentage points increase in female wages or an 11.59% fall in the gender pay gap). This fall in the pay gap is mostly driven by senior female academics negotiating higher wages and female academics moving to universities with equal opportunity. We do not find any evidence of pre-existing wage gap or the gender composition associated with the fall in the gender pay gap.

Keywords: gender pay gap, pay transparency, higher education sector, wage level

JEL Classification: I23, J16, J31, J44

Suggested Citation

Gamage, Danula Daksith Kankanam and Kavetsos, Georgios and Mallick, Sushanta and Sevilla, Almudena, Pay Transparency Initiative and Gender Pay Gap: Evidence from Research-Intensive Universities in the UK. IZA Discussion Paper No. 13635, Available at SSRN: https://ssrn.com/abstract=3682949 or http://dx.doi.org/10.2139/ssrn.3682949

Danula Daksith Kankanam Gamage (Contact Author)

Queen Mary University of London ( email )

Mile End Road
London, London E1 4NS
United Kingdom

Georgios Kavetsos

Queen Mary University of London ( email )

Mile End Road
London, London E1 4NS
United Kingdom

Sushanta Mallick

affiliation not provided to SSRN

No Address Available

Almudena Sevilla

Queen Mary, University of London ( email )

Mile End Road
London, E1 4NS
United Kingdom

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