The Joint Effect of Pay Range Disclosure Width and Gender on Job Applications

SYNOPSIS Pay range disclosures are increasingly common on job postings around the world, due in part to new disclosure laws that aim to reduce labor market inequities. However, a lack of clear legislative guidance has led to significant variation in the width of disclosed pay ranges. We propose that widening the disclosed pay range decreases women's willingness to apply more than men's. Results from an experiment with both between-subjects and within-subjects components show that women are significantly less willing to apply to a job posting with a wide versus narrow pay range, whereas men appear indifferent to pay range width. Path analysis supports our theory that perceived pay equity is a primary channel for the effect. Our findings suggest that pay range width may affect the diversity of applicant pools, which is informative to regulators considering implementing or amending pay disclosure laws and companies navigating the emerging pay disclosure landscape. JEL Classifications: C91; J01; J16; J24; J30; J70; M12; M14; M40; M41; M50; M52; M54.