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Pay Transparency Tools to Close the Gender Wage Gap

image of Pay Transparency Tools to Close the Gender Wage Gap

Women continue to earn less than men, in spite of major societal changes over decades and many labour market, educational and public policy initiatives that have targeted the gender wage gap. To address this persistent challenge, many governments are now mandating promising new pay transparency tools like employer pay gap reporting, equal pay audits, and gender-neutral job classification systems.

These policies hold considerable allure. Pay transparency offers a relatively simple and intuitive way to identify and address gender wage gaps when they occur in a workplace. These policies can function well in publicising wage gaps and incentivising employers to address the inequalities they find – but only with the right policy design and implementation. This report presents the first stocktaking of pay transparency tools across OECD countries and explores how such policies can help level the playing field for women and men at work.

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Can pay transparency policies close the gender wage gap?

As part of their efforts to close gender wage gaps, many OECD countries are implementing promising new pay transparency tools like employer pay gap reporting, equal pay audits, and job classification systems. These measures offer a relatively simple way to identify and address gender wage gaps when they occur in a workplace – but their design and implementation matter. This chapter discusses the persistence of the gender wage gap throughout the OECD, presents definitions and an overview of pay transparency policies in OECD countries, and closes with a detailed discussion of lessons learned and policy recommendations.

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