Pay inequity: Old problem, new solutions?

Gender pay inequity, manifested in part by the Gender Pay Gap (GPG), is a persistent problem worldwide. The increasing consensus about the limited effectiveness of equal pay laws to address pay inequity has led to the emergence of other policies and regulatory tools to tackle this phenomenon. Among these tools, Pay Transparency Legislation (PTL), which places disclosure duties upon employers and seeks to reduce pay information asymmetries, have been introduced in many OECD countries. This introduction provides the conceptual, historical and broader regulatory context for the rich collection of chapters that throughout this book illustrate PTL’s potential and limits across and within over 14 jurisdictions. The chapter examines the causes of the GPG, provides key terminological clarifications and explores the four waves of pay equity regulation, starting in the early 20th century. It also briefly analyses the key features of the 2023 EU Pay Transparency Directive (PTD), that will become binding in June 2026. Finally, the chapter provides an overview of the book structure, highlighting the key themes that emerge in individual chapters as well as differences and similarities between them.