Leave the 'opportunity to grow', just say how much you pay
The UK government is advancing legislation to require salary ranges in job advertisements. Studies in the US show an average increase of 1.3%–3.6% in wages under transparency, but also risks of overly broad ranges and employer hardening.
The UK government has announced the advancement of legislation that will require employers to publish salary ranges in job advertisements. The article examines the economic implications of this step, focusing on the information gaps between employers and candidates. It cites a study by the National Bureau of Economic Research (NBER) in the US that found an increase of 1.3% to 3.6% in average wages in American states that adopted salary transparency, without harming employment. Conversely, another study from 2022 found a decrease of about 2% in wages under laws protecting employees' right to inquire about colleagues' salaries, due to hardening employer positions. The article warns against overly broad salary ranges (e.g., 8,000–25,000 NIS) that could weaken transparency, and notes that even full information does not guarantee equal bargaining power for all candidates.