Does pay transparency close the gender wage gap?
Archived Content
Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.
Description: Does pay transparency close the gender wage gap?
Does pay transparency close the gender wage gap?
Women earn less than men, on average, in the Canadian labour market. The gender pay gap may persist, in part because it is hidden.
By examining the introduction of public-sector salary disclosure laws across provinces on faculty salaries at universities, pay transparency is found to reduce the gap between men's and women's earnings.
The gender pay gap in Canadian universities, 1981 to 2017
The gender pay gap among faculty at Canadian universities has been closing gradually over time, especially around 1996 when the first salary disclosure laws were introduced in several provinces.
| Year | Gender Pay Gap (Percent) |
|---|---|
| 1981 | -9.6 |
| 1982 | -9.5 |
| 1983 | -9.1 |
| 1984 | -9.1 |
| 1985 | -8.8 |
| 1986 | -8.8 |
| 1987 | -8.8 |
| 1988 | -8.7 |
| 1989 | -8.8 |
| 1990 | -8.5 |
| 1991 | -8.0 |
| 1992 | -8.1 |
| 1993 | -7.9 |
| 1994 | -8.0 |
| 1995 | -8.0 |
| 1996 | -7.3 |
| 1997 | -7.0 |
| 1998 | -6.6 |
| 1999 | -6.2 |
| 2000 | -5.9 |
| 2001 | -6.0 |
| 2002 | -6.0 |
| 2003 | -5.6 |
| 2004 | -5.7 |
| 2005 | -5.2 |
| 2006 | -5.0 |
| 2007 | -4.8 |
| 2008 | -4.5 |
| 2009 | -4.1 |
| 2010 | -3.8 |
| 2011 | -3.7 |
| 2012 | -3.5 |
| 2013 | -3.4 |
| 2014 | -3.3 |
| 2015 | -3.1 |
| 2016 | -2.9 |
| 2017 | -2.8 |
Pay transparency helps reduce the gender pay gap
University departments where some faculty members’ salaries were disclosed saw a 30% reduction in the gender pay gap relative to departments where no salaries were disclosed.
Collective bargaining matters
Reduction in the gender pay gap when salary disclosure laws were introduced:
- Among unionized faculty: 35%
- Among non-unionized faculty: Approx. 0%
Source: Baker, M., Y. Halberstam, K. Kroft, A. Mas, and D. Messacar. Pay transparency and the gender gap. Analytical Studies Branch Research Paper Series, no. 430. Statistics Canada Catalogue no. 11F0019M. Ottawa: Statistics Canada, 2019.
- Date modified: