Do Salary Transparency Laws Actually Help You Negotiate?
Transcript
16 states now require employers to post salary ranges. That sounds like it should make negotiation easier. The data says it's more complicated.
The wins are real. Colorado's transparency law raised posted salaries 3.6%, and actual earned salaries rose 1.3% across the board. Denmark's law cut its gender pay gap by 13%.
But Harvard and Brown found a paradox. When both sides know the range, expectations compress. The employer knows what you'll likely accept, you know what they'll likely offer, and the window narrows.
And here's the catch with Denmark: the gap closed by restraining wages at the top, not by raising them at the bottom. Transparency is good for equity. It is not automatically good for your individual leverage.
Knowing the difference changes your strategy.
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