Pay Transparency

If companies have to disclose how much they pay all their employees, that should make compensation fairer, shouldn’t it? It would be harder for a company to get away with paying a woman or a person of color a lot less for doing the same work as a white man. That’s the thinking, at least, behind pay transparency laws about half of the states have adopted. But since those laws took effect, wages in the private sector in those states have actually declined a bit. Does pay transparency actually hurt the workers it’s supposed to help? Harvard Business School professor of economics Zoe Cullen examines the issue. (Segment produced by Martha Harris)