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- July 2021
- Article
Consumers—Especially Women—Avoid Buying from Firms with Higher Gender Pay Gaps
By: Tobias Schlager, Bhavya Mohan, Katherine DeCelles and Michael I. Norton
We document a unique driver of consumer behavior: the public disclosure of a firm’s gender pay gap. Four experiments provide causal evidence that when firms are revealed to have gender pay gaps, consumers are less willing to pay for their goods, a reaction driven by...
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Keywords:
Pay Gap;
Perceived Wage Fairness;
Purchase Intention;
Gender;
Wages;
Fairness;
Perception;
Consumer Behavior
- 2021
- Working Paper
Equilibrium Effects of Pay Transparency
By: Zoë B. Cullen and Bobak Pakzad-Hurson
The public discourse around pay transparency has focused on the direct effect: how workers seek
to rectify newly-disclosed pay inequities through renegotiations. The question of how wage-setting
and hiring practices of the firm respond in equilibrium has received...
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- 2021
- Working Paper
The Old Boys' Club: Schmoozing and the Gender Gap
By: Zoë B. Cullen and Ricardo Perez-Truglia
Offices are social places. Employees and managers take coffee breaks together, go to lunch,
hang out over drinks, and talk about family and hobbies. In this study, we show that employees’
social interactions with their managers are advantageous for their careers and...
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- November 2019
- Case
Celebrity Fashions Limited (A)
By: V.G. Narayanan, Tanvi Deshpande and Shreya Ramachandran
In May 2017 in Chennai, India, the chairman of Celebrity Fashions doubted whether the company could last until the end of the year. Venkatesh Rajagopal had found that the company, a readymade garment manufacturing and exporter he founded in 1989, was having a hard time...
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- May 2017
- Article
Immigration and the Rise of American Ingenuity
By: Ufuk Akcigit, John Grigsby and Tom Nicholas
We build on the analysis in Akcigit, Grigsby, and Nicholas (2017) by using U.S. patent and census data to examine the relationship between immigration and innovation. We construct a measure of foreign born expertise and show that technology areas where immigrant...
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- August 2015 (Revised March 2017)
- Case
The $70K CEO at Gravity Payments
By: Mitchell Weiss, Michael I. Norton, Michael Norris and Sarah McAra
In 2015, Gravity Payments CEO Dan Price took a massive pay cut to raise the minimum wage at his company to $70,000 annually. In the wake of a national discussion of wage equality, he was met with cheers and jeers. The company hoped that the unorthodox move would,...
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- Article
How Much (More) Should CEOs Make? A Universal Desire for More Equal Pay
By: Sorapop Kiatpongsan and Michael I. Norton
Do people from different countries and different backgrounds have similar preferences for how much more the rich should earn than the poor? Using survey data from 40 countries (N = 55,238), we compare respondents' estimates of the wages of people in different...
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