Pay check: the unintended consequences of salary transparency

工资透明化的后果

Editor's Picks from The Economist

2025-01-30

5 分钟
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A handpicked article read aloud from the latest issue of The Economist. Few conversations between colleagues are more discomfiting than a discussion about salaries. But greater pay transparency doesn't always lead to good outcomes. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+. For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.
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  • The Economist.

  • Hello, Mike Byrd here, co-host of Money Talks,

  • our weekly podcast on markets, the economy and business.

  • Welcome to Editor's Picks.

  • We've chosen an article from the latest edition of The Economist,

  • which we very much hope you'll enjoy.

  • How much do your colleagues get paid?

  • In a few countries, such as Norway,

  • you can take a good guess by looking at public records on individuals' overall tax payments and income.

  • But in most places, finding out people's salaries means asking them what they earn.

  • And that is about as socially acceptable as saying "What an ugly baby."

  • In a recent study Zoë Cullen of Harvard Business School

  • and Ricardo Perez-Truglia of the University of California, Los Angeles,

  • offered monetary rewards to employees of a South-East Asian bank

  • if they were able to accurately estimate the wages of some of their peers.

  • The researchers found that a majority of employees were very uncomfortable asking colleagues about their pay

  • and were also unwilling to reveal their own salaries to their colleagues,

  • particularly if they thought they might be earning more than them.

  • Norms of privacy and secrecy around income help explain

  • why legislators who fret about unfair pay differentials increasingly require greater transparency.