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Businessweek
Businessweek
Business
Alice Kantor

Closing the Gender Pay Gap Requires Teeth, Not Just Transparency

The gender pay gap has remained stubbornly wide for decades, despite efforts by governments to narrow it. But a recent rush of legislation and directives aimed at bringing greater transparency on pay appears to be succeeding where other mandates have not—though progress still varies markedly country by country.

Whether it’s requiring employers to report pay gaps within companies or publish salary ranges on job postings, or barring them from asking applicants for their salary history, the measures are yielding results, experts say. “Addressing the gender wage gap requires a multipronged approach,” says Emanuela Pozzan, senior gender equality specialist at the International Labour Organization. “It’s great to see this momentum for pay transparency and its effects on the gap.”

One standout has been Iceland, which in 2018 enacted legislation demanding “equal pay, equal value,” meaning positions with comparable skills, hours and intensity must be paid the same, regardless of the industry or the job. The law forced companies to justify the reasoning behind each pay and bonus decision. The measure has contributed to the country halving its gender pay gap in the past decade. It’s also sparked a wave of similar initiatives around the world.

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