Salary History Bans and Wage Bargaining: Experimental Evidence

B-Tier
Journal: Labour Economics
Year: 2020
Volume: 65
Issue: C

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Motivated by recently passed laws in the United States banning inquiries about salary history, this experiment examines the impact of information about a player’s outside option in bargaining. The policy intention is studied by comparing private information to perfect information. Since the laws do not prevent voluntary revelation of salaries, a third treatment examines the impact of adding a truthful revelation choice by the informed party. I find that the signaling value of revelation decisions undermines the benefits of private information. A fourth treatment allows for outside options to be misrepresented. Overall, results suggest that these laws may not work as well as intended.

Technical Details

RePEc Handle
repec:eee:labeco:v:65:y:2020:i:c:s0927537120300579
Journal Field
Labor
Author Count
1
Added to Database
2026-01-25