Last year, Massachusetts passed the first law in the U.S. banning employers from asking job candidates about their salary history. Since then, several other cities and states have followed suit or are considering similar legislation. The topic has sparked some heated debates and even resulted in a lawsuit in one city, brought by the Greater Philadelphia Chamber of Commerce.
Why Banning Questions About Salary History May Not Improve Pay Equity
A survey reveals the potential for hidden biases.
September 05, 2017
Summary.
In a survey conducted to better understand the relationship between the salary history question and the gender pay gap, researchers at PayScale found that women who declined to give their previous salary were offered 1.8% less than women who did disclose. Men who declined, however, were paid 1.2% higher than men who disclosed. The root of this discrepancy could come down to two biases: people reacting negatively to women who negotiate their pay and employers assuming women who decline are paid less than they actually are.
New!
HBR Learning
Diversity, Inclusion, and Belonging Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Diversity, Inclusion, and Belonging. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to build a better, more just workplace.
Learn More & See All Courses
New!
HBR Learning
Diversity, Inclusion, and Belonging Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Diversity, Inclusion, and Belonging. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to build a better, more just workplace.