A recent paper “Perpetuating Wage Inequality: Evidence from Salary History Bans” published in the Journal of Economic Inequality by scholars from TPRI (James Bessen, Erich Denk, and Chen Meng) has influenced policy.
James Bessen, Erich Denk, Joowon Kim, Cesare Righi
This paper reports the first recent estimates of trends in the displacement of industry-leading firms. Displacement hazards rose for several decades since 1970 but have declined sharply since 2000. Using a production function-based model to explore the role of investments, acquisitions, and lobbying, we find that investments by dominant firms in intangibles, especially software, are distinctly associated with greater persistence and reduced leapfrogging.
New research finding that firm size, productivity dispersion, and large firm investments in intangibles can account for much of the decline in the response to productivity since 2000, and that industry concentration is directly related to aggregate productivity growth.
James Bessen, Chen Meng, and Erich Denk cited by the Center for American Progress for their research on the effect of salary history bans on reducing gender pay gaps.
James Bessen, Erich Denk, and James Kossuth, in Harvard Business Review on why employers should stop asking applicants about their salary histories, even without a formal salary history ban.