New research points to salary history bans as an effective way to boost pay for job changers—particularly for women and black workers.
Using data collected by a labor market analytics company, the Bureau of Labor Statistics, and the Census Bureau, the team compared salaries from neighboring counties within the same labor market—one without a ban and one with a ban. What they found was that following salary history bans, employers were posting wages more often alongside job openings and that there was a significant difference between pay for job changers— particularly for women and Black employees.
"I think we were a little bit surprised by the magnitude of the findings in terms of the salaries of job changers," said Dr. Chen Meng, one of the researchers on the project."The magnitudes of the increases in the pay of the job changers of 5-6% was striking on its own. The fact that these changes were even larger for Blacks and women provides stronger evidence of wage inequality," she continued.
As much of the activity on the salary history ban front is fairly recent, the group looks forward to being able to collect more data over time."Many of these policies are fairly new, and some salary history bans that have been passed have not yet come into effect.
The group also pointed out that their work was conducted during a time when the economy was reasonably healthy, so further research would be needed to be done to know whether salary history bans would have a similar effect in a more vulnerable economic landscape. It's also important to note that there are slight variations between the salary history bans from state to state and across municipalities. For instance, some only pertain to public employers.
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