Pay transparency reduces wage disparities — at a cost

A coldly rational person probably wouldn’t care what her coworker is paid — at least not to determine satisfaction with her own compensation.

That hypothetical rational person would only need to answer a simple question for herself: Between wages and other benefits, does this job give me more total value than any other readily available one for my skills? What a coworker is paid wouldn’t change her answer because that coworker would have a different calculus. READ MORE