Labor Market Participants’ Reactions to Salary Range Disclosures

Due to increasing calls to reduce the gender pay gap, many U.S. cities and states have passed or are debating laws requiring salary range disclosures in job postings. We use an experiment to examine the effects of such disclosures on labor market participants’ application likelihood and negotiation likelihood if offered the position. We manipulate pay range disclosure at three levels: no pay range, broad pay range, and narrow pay range. We find that female participants are more likely than male participants to apply to positions with a narrow range compared to no range or a broad range. We also find that female participants are more likely to negotiate salary when pay ranges are present than when they are absent, and that this effect is driven by narrow pay ranges. Results of our study are not only useful for policymakers but also for employers who seek to create more equitable workplaces.