Research Seminar
[Brown Bag] The Implications of Pay Range Transparency by Prof. Tae Youn PARK, SKK Business School, Sungkyunkwan University
| Abstract: | Abstract: Pay transparency initiatives aim to reduce gender pay disparities in the labor market by increasing access to salary information. However, pay range transparency laws, which mandate the disclosure of salary ranges rather than exact figures, may unintentionally lead to gender differences in job-seeking and negotiation behaviors. Across four studies, we find that women prefer job postings with narrower pay ranges more than men do—a preference influenced by higher risk aversion—and that this preference leads to less assertive negotiation behaviors. Using a large archival dataset of U.S. job postings, Study 1 finds considerable variation in pay range sizes across organizations, and shows that those with wider pay ranges tend to have lower representation of female employees. In a survey of New York State residents, Study 2 reveals that women prefer narrower pay ranges more than men do, and that this difference is explained by risk preferences. Study 3 extends these findings among upper-level undergraduates entering the job market, showing that preference for narrower pay ranges is associated with less assertive negotiation behaviors. Study 4 employs a field experiment with actual job seekers, confirming that women are more likely to apply to jobs with narrower pay ranges in real-world settings. Collectively, these findings highlight a potential pathway through which pay range disclosures may inadvertently contribute to gender disparities in job application and compensation outcomes, underscoring important implications for policymakers and organizations aiming to promote pay equity through transparency initiatives. |
| Date: | Jan 14 (Tue), 2025 2:30 pm - 4:00 pm |
| Time: | 2:30PM - 4:00PM |
| Venue: | 6-207, Level 6, Lau Ming Wai Academic Building (LAU) |
| Details: | Speaker bio: Biography: Prof. Tae Youn Park is a Professor of Management in the SKK Business School, Sungkyunkwan University (SKKU). He is also the Director of Research at the Institute for Compensation Studies in the ILR School, Cornell University. Before joining SKKU, he was an Associate Professor at the ILR School, Cornell University, and an Assistant Professor at the Owen Graduate School of Management, Vanderbilt University. Tae-Youn’s research focuses on finding ways to achieve balanced, mutually beneficial employment relationships. With this goal, he examines how employment policies and practices, such as employee turnover management and total rewards management, affect both employers and employees. His work has been published in numerous journals across disciplines, including Academy of Management Journal, Academy of Management Annals, Psychological Bulletin, Journal of Applied Psychology, Industrial and Labor Relations Review, and Strategic Management Journal. He currently serves on the editorial board of Academy of Management Journal, Journal of Applied Psychology, Personnel Psychology, and others. |
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