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Pay transparency is designed to close gender and racial pay gaps, but new research contends that it can also have downsides
Comparing pay among co-workers could lead to interpersonal conflict with peers, while full transparency showing equal pay among co-workers could actually reduce workers’ ability to negotiate raises, a new paper argues.
istock
Pay transparency doesn’t always help workers.
That’s one of the findings of a new working paper, distributed by the National Bureau of Economic Research, that examines pay-transparency policies over the past two decades.
While policies that help workers compare pay across different companies can encourage them to seek better salaries or…
