Impact of public sector salary disclosure laws on university faculty salaries in Canada: The laws reduced salaries on average, although they reduced the gender pay gap between men and women

Pay Transparency and the Gender Gap. Michael Baker, Yosh Halberstam, Kory Kroft, Alexandre Mas, Derek Messacar. NBER Working Paper No. 25834. May 2019. https://www.nber.org/papers/w25834

Abstract: We examine the impact of public sector salary disclosure laws on university faculty salaries in Canada. The laws, which enable public access to the salaries of individual faculty if they exceed specified thresholds, were introduced in different provinces at different points in time. Using detailed administrative data covering the universe of faculty in Canada and an event-study research design, we document three key findings. First, the disclosure laws reduced salaries on average. Second, the laws reduced the gender pay gap between men and women. Third, the closure of the gender gap is primarily in universities where faculty are unionized.