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Disclosure: think twice before telling colleagues your salary

Employers have both creditable and discreditable reasons for pay secrecy

You show me yours and I’ll show you mine? Colleagues generally only swap salary details with co-workers furtively. One reason is that some employers discourage or even ban such discussions. Their stance is at odds with a trend for greater disclosure inspired by pay equality campaigns.

Finland provides one example. According to Reuters, a proposed law would force employers to disclose data on colleagues’ pay to workers who suspected gender discrimination.

That could help close Finland’s 16 per cent gender pay gap. But at a broader level, greater disclosure cannot guarantee everyone a raise. A recent working paper from the National Bureau of Economic Research concluded just this. Colleagues who share salary information end up earning less as a group, the researchers found.

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