Abstract
New laws aim to reduce inequality by limiting the information employers can seek. Although employers are forbidden from seeking certain information, workers are free to disclose voluntarily. A large survey of the US workforce shows that men are more likely to disclose their salaries unprompted, particularly when they believe that other candidates are volunteering. Women report higher disclosure costs (particularly non-pecuniary psychological or cultural costs), and are more likely to resist disclosing (even if others disclose). A simple theoretical model shows the importance of the disclosure costs, and of the accuracy of employer beliefs about group differences. We also show how a ban can affect both pay equality as well as workforce composition. Our survey finds disclosure patterns consistent with unraveling in the U.S. job market during 2019-2021. About 60% of workers believe salary history will be used to decide if they receive an offer at all (in addition to the composition terms in the offer). A large percentage of workers (28%) volunteer salary history, even when a ban prevents employers from asking. An additional 47% will disclose if enough rival job candidates disclose. Over our 1.5-year sample, unprompted volunteering of salaries increased by about 6-8 percentage points. Our results suggest that workers act as if non-disclosure is a negative signal.