The MIT SMR Strategy Forum offers monthly insights from academic experts on pressing strategy issues related to business, management, technology, and public policy.

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As the employment market continues to shift, a worker push for transparency is making headway. About a quarter of U.S. workers now live in states, counties, or cities where employers are legally required to share pay ranges. In some areas, including New York City and the states of Colorado, California, and Washington, employers must list the salary range in job postings. Other localities’ laws oblige companies to share salary ranges upon request, during the interview process, or when extending a job offer.

It’s safe to assume that available salary ranges may change the level of applicant interest, but it’s harder to envision the big-picture effects these transparency laws will have on salaries and compensation overall. We turned to our expert panelists for their responses to this statement: New salary transparency laws will cause companies to increase bonus pay and other nonreportable perks as a share of total compensation.

Agree

The largest group of panelists (45%) agree to some extent that transparency laws will drive changes in compensation, with some saying that these laws will increase pay equity and empower employees. Bocconi University’s Andrea Fosfuri asserts that “salary transparency is likely to generate employee complaints and salary adjustment requests as pay differentials...

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