Abstract
The United Kingdom passed the UK-Equality-Act-2010 in 2017, mandating public and private firms to disclose their gender pay gap (GPG). To evaluate the effectiveness of this regulation, we examine whether the effect of the disclosure rule led to any change in male and female pay differences. Our analysis reveals that the GPG disclosure has reduced the pay gap over time since the Equality Act was introduced. The results hold for different regression specifications and after controlling for industry-fixed effects. The findings may suggest a possible channel through which policymakers can reduce gender disparities and improve corporations’ social responsibility conduct.
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