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Good practice Imported

Denmark's 2006 Gender-Disaggregated Wage Statistics Law — Pay Transparency Cut the Gender Pay Gap by 2 Points

Denmark · Copenhagen · See the Denmark profile · See the Copenhagen profile

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Denmark's 2006 law obliging firms to report gender-disaggregated wage statistics narrowed the gender pay gap by about 2 percentage points (13%), mainly by slowing male wage growth, without affecting profitability.

Denmark's 2006 Gender-Disaggregated Wage Statistics Law — Pay Transparency Cut the Gender Pay Gap by 2 Points

Details

Promoter
Danish Parliament / Danish Ministry of Employment
Period
2006-present
Keywords
labour market, pay transparency, equal pay, wage statistics

Description

In 2006 Denmark introduced legislation requiring firms to provide gender-disaggregated wage statistics.
A peer-reviewed study by Bennedsen, Simintzi, Tsoutsoura and Wolfenzon (Journal of Finance, 2022; NBER Working Paper 25435) used difference-in-differences and difference-in-discontinuities designs on Danish employer-employee administrative data.
The gender pay gap declined by about 2 percentage points, or 13% relative to the pre-legislation mean. The reduction came primarily from slower wage growth for male employees rather than faster growth for women.
The overall wage bill fell but firm profitability was unaffected, which the authors attribute to an offsetting decline in productivity. Policymakers should therefore treat this as a cautionary as well as a positive case.

Read the full analysis: https://researchprofiles.ku.dk/en/publications/do-firms-respond-to-gender-pay-gap-transparency/

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