Pay Transparency in New York City as the new law begins to take effect

from Market Design at https://bit.ly/3OCyuGF on November 26, 2022 at 11:06AM

 Here’s a report from Glassdoor Economic Research:

A First Glimpse into the Impact of Pay Transparency in New York City by Daniel Zhao

"On November 1, New York City’s pay transparency law went into effect, requiring job listings to include salary ranges. While the move represents an opportunity for job seekers to get greater pay transparency, high-profile errors as the new law went into effect have raised concerns about the efficacy of the law. With similar laws going into effect on January 1, 2023 in California and Washington State, we examined Glassdoor data to give an early view into how employers are grappling with pay transparency in New York City.

"Key Findings

"Pay ranges are being published on the majority of active job listings. 60 percent of job listings in New York City have employer-provided salaries as of November 12, and there are hints of a spillover effect to neighboring states.

"Ranges have widened significantly, but remain relatively narrow. The median width of salary ranges has widened from $10,000 in October to as wide as $20,000 so far in November. Less than 3 percent of daily active job listings in November have a salary range wider than $100,000.

"Professional services like Financial Services, Information Technology and Pharmaceutical & Biotechnology are the slowest to add pay ranges to their pay ranges. This may mean enforcing pay transparency will matter more in these higher-salary industries than in lower-wage industries."