Preliminary data shows that more people are interested in finding work in Colorado now that employers are required to list salary ranges in job ads.
Despite the drop in job openings in the state, eg new research from Recruitonomicsa site that analyzes labor market data.
The July report examines the impact of Colorado’s Equal Pay for Equal Work Act, which goes into effect in January 2021 and requires employers to disclose the salary level in all job advertisements.
Two important things happened in the first year after the law was implemented, researcher Sam Kuhn told CNBC Make It: First, job postings fell in that with today in fact to 8.2% in Colorado compared to the neighboring Utah (selected as a control for obtaining. similar populations and economic conditions).
Fall jobs in Colorado according to the evidence Companies are actively prohibiting workers in the state from requesting some remote jobs, or taking the job in other places, in order to avoid being forced.
Second, the data shows a 1.5% increase in Colorado’s labor force participation rate relative to Utah’s.
The researchers note that the increase in Colorado workers cannot be fully explained by the transparency law – it is related to the general hiring boom in the middle of the US as companies recover from closures of Covid, even in many cases. can’t afford to spend enough. Compared to Utah, however, workers in Colorado are more willing to take on the job.
The analysis does not consider whether the law achieves the objective of reduction Pay varies by race and gender.
With that said, coauthor and Recruitonomics research director Andrew Flowers says that reporting transparency laws is a win-win: Research shows. employee there are too many in love o clear actions payand at least in this case, it appears that Colorado employers are doing better at filling job openings in a tight job market as the number of ads drops.
“Employers willing to incur the cost of putting their cards on the table and divulging the salary range may find job seekers less competitive,” Flowers said.
As especially states and cities to adopt the same clear laws, including California a New yorkFlowers believes that companies will have to work harder to secure their rental markets in order to prevent enforcement.
“The more you become a team about the paid experience, the less likely you are to see a drop in ads,” Flowers said. “They don’t leave California for New York.”
How Colorado’s pay transparency law is impacting work in the state Source link How Colorado’s pay transparency law is impacting work in the state