Pay transparency: Empowering or embarrassing?

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Pay transparency: Empowering or embarrassing?
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As information technology makes data more accessible, pay transparency is a growing movement. But opinions are mixed on whether it can help end racial and gender pay disparities or if it’s an invasion of privacy.

Orly Lobel

Lobel is the author of"The Equality Machine: Harnessing Digital Technology for a Brighter, More Inclusive Future." She said that transparency allows us to make better, and more equitable decisions when it comes to policy in the workforce and elsewhere.Elizabeth Lyons is a professor of management at UC San Diego and she has studied the effects of pay transparency on gender wage gaps, which she says is clearly a problem.

A law in the Canadian province of Ontario required all organizations that received government funding to make public the name, position and salary of those making over $100,000. The information was available on a searchable public database. In other words, the organizations corrected the pay gaps because they were concerned about their public image.. Employees must also be told, upon request, the pay range of their own positions.. She says pay transparency is fraught with difficulty.

Back in Balboa park, KPBS approached the public who said when you enter the labor market, you should know what the “going rate” of pay is. That gives you leverage in negotiations.

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