Does Pay Transparency for Employees Affect Product Recalls?
利用美国各州分阶段实施的薪酬透明度法律，研究发现薪酬透明度导致企业产品召回增加，可能因降低劳动力质量所致，且对劳动密集型和关键员工流失风险高的企业影响更大。
ABSTRACT Pay transparency can affect workers’ behavior and, consequently, firm outcomes. This study exploits the state‐level, staggered enactment of pay transparency laws to examine how pay transparency affects firms’ product recalls. We find that firms headquartered in pay‐transparency‐law states see an increase in product recalls. This outcome suggests that pay transparency may lower workforce quality. Lending further support to this theory, our evidence shows that the increase in recalls is more pronounced for more labor‐intensive firms, and those that are more at risk of losing key employees. An additional analysis reveals that pay transparency increases both the likelihood and severity of product recalls. Finally, we document that when pay transparency negatively impacts firms’ product quality, the firms’ future performance also declines.