Scribd Logo
Upload

Welcome to Scribd!

  • Article 1

    Uploaded by

    Arghyadeep Chakraborty
    10 views10 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    10 views10 pages

    Article 1

    Uploaded by

    Arghyadeep Chakraborty

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 10
    1110728, 539 Pat How salary benchm ing by employers fects workers’ pay | Haas News | Berkeley Heas Read the latest campus information on coronavirus (COVID-19) here — (https://coronavirus. berkeley.edu/) (httpsi/haas berkeley.edu) Q NEWSROOM (HTTPS://NEWSROOM.HAAS. BERKELEY. EDU) How salary benchmarking by employers affects workers’ pay November 18, 2022|By Kathleen Pender hitpsn +1073, 539 PM How salary benchmarking by employers afects workers pay| Haas News | Berkley Haas Awave of pay transparency laws aimed at reducing inequities is giving millions of workers access for the first time to information on what co-workers make and what potential employers will offer. Yet comparing salary information is nothing new for employers. While U.S. antitrust law prohibits employers from directly sharing salary information with each other, most mid-sized and large companies routinely use aggregated data from third parties to get aread on the going rates. The effects of this widespread practice, known as salary benchmarking, have never been systematically studied—until now. Following White House concerns that benchmarking may be used to suppress wages and benefits, a new study (https://www.nber.org/papers/w30570) offers the first evidence on its impact on workers. The conclusion: Benchmarking does not have a negative effect on pay for the average employee. While some salaries decrease and others increase after a company uses a benchmarking tool, salaries overall simply move closer to the benchmark. “If there was a negative effect on salaries, it would be suggestive of anti-competitive effects,” said Associate Professor Ricardo Perez-Truglia, who authored the new National Bureau of Economic Research working paper with Zoe B. Cullen (https://www.nber.org/people/zoe_cullen) and Shengwu Li (https://www.nber.org/people/shengwu_li) of Harvard University. “That's not what we found. If anything, we see some small salary gains for low-skill occupations.” The researchers used aggregated data from the nation’s largest payroll processing firm to see how much employers paid new hires in hundreds of job categories before and after they used the payroll firm's salary benchmarking tool. They found that hitps newsroom .haas berkeley edulrescarchihow-salary benchmarking by- (https://haas.berkeley.edu/faculty/ricardo-perez-truglia/) Trending How Woodrow Wilson's racist policies eroded the Black civil service (https://newsroom.haas.berkeley.edu/research/how-woodrow-wilsons-racist- segregation-order-eroded-the-black-civil-service/) Why the tech layoffs offer opportunity for a reset: Q&A with Saikat Chaudhuri (https://newsroom.haas.berkeley.edu/why-the-tech-layoffs-offer-opportunity-for-a-reset- qa-with-saikat-chaudhuri/) Do multinational corporations exploit foreign workers? Q&A with David Levine (https://newsroom.haas.berkeley.edu/do-multinational-corporations-exploit-foreign- workers/) Berkeley Haas Dean Ann Harrison on her days as a globetrotting development economist and her new book (https://newsroom.haas.berkeley.edu/research/g-a-dean- hitpstinewsroom.haas berkeley edulrescarchihow-salary-benchmarking-by-

    You might also like