Pay Transparency Intervention and the Gender Pay Gap: Evidence from the UK

34 Pages Posted: 4 Jul 2022

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

Queen Mary - University of London; Queen Mary University of London

Almudena Sevilla

University College London

Abstract

This study investigates the impact of a pay transparency intervention in reducing the gender pay gap in the UK university sector. Introduced in 2007, the initiative enabled public access to average annual earnings disaggregated by gender in UK universities. We use a detailed matched employee-employer administrative dataset that follows individuals over time, allowing us to adopt a quasi-experimental approach based on event studies around the intervention. We find that the earnings of female academics increased by around 0.62 percentage points compared to their male counterparts as the control group, whose earnings remained constant after the pay transparency intervention, reducing the gender pay gap by 4.37%. Further evidence reveals that the main mechanism for the fall in the pay gap is driven by female employees negotiating higher wages, particularly among senior female academics.

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

Suggested Citation

Gamage, Danula Daksith Kankanam and Kavetsos, Georgios and Mallick, Sushanta and Mallick, Sushanta and Sevilla, Almudena, Pay Transparency Intervention and the Gender Pay Gap: Evidence from the UK. Available at SSRN: https://ssrn.com/abstract=4153192 or http://dx.doi.org/10.2139/ssrn.4153192

Danula Daksith Kankanam Gamage

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 (Contact Author)

Queen Mary - University of London ( email )

School of Business and Management
Mile End Road
London, England E1 4NS
United Kingdom
+44 20 7882 7447 (Phone)

HOME PAGE: http://skmallick.busman.qmul.ac.uk/

Queen Mary University of London ( email )

Mile End Rd
London, E1 4NS
United Kingdom
+44 20 7882 7447 (Phone)

HOME PAGE: http://skmallick.busman.qmul.ac.uk/

Almudena Sevilla

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

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