Can transparency mandates reduce the gender wage gap? Firm size discontinuity evidence

Ana Melissa Ferreira, Pedro Brinca, João Duarte, João Pereira and Pedro Martins

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: While pay transparency is an increasingly popular policy to reduce the gender wage gap (GWG), its effectiveness is still unclear. We evaluate the impact of a 2018 law in Portugal that required firms to assess their potential gender wage disparities, while imposing penalties to firms of 250 or more employees that did not correct or justify gender gaps. Using difference-in-difference-in-differences, regression discontinuity, and difference-in-discontinuity methods, together with detailed matched data, we find that the transparency reform had a minimal impact to reduced the GWG by around 1 percentage point (p.p.). These effects are particularly strong in firms that employ high-skilled females, and for employees that are not covered by collective bargaining, where the impacts rise to 1.5 p.p.. This effect is not associated with employment effects.

JEL-codes: J16 J31 J78 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ptu:wpaper:w202610

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