Transparency upon request: the right to pay information and the gender pay gap

Abstract Pay transparency measures are widely adopted policy instruments to decrease the gender pay gap. This paper studies a policy that grants access to wage information only upon request, analysing a German pay transparency law that grants workers the right to request information about the earnings of colleagues in comparable positions. Using large‐scale administrative data and exploiting variation in exposure to the policy due to an exogenous cut‐off in firm size, we investigate the causal impact of this pay transparency policy. Wages and the gender wage gap in treated firms were unaffected. The right to request wage information alone, that is, the endogenous access to wage information, is not an effective policy tool. These findings are robust, with no detectable effects in firms where pay transparency may be particularly powerful.