Observable Information Acquisition, Social Costs, and Pay Dispersion
When Norway made searches in public tax records visible to the person searched, looking up others' pay became socially costly. Pay dispersion rose more, by about 3–4 percent, in firms with fewer searches after the reform. How well transparency works depends not only on whether information is available, but on the cost of acquiring it.
Covered in digi.no: «Denne setningen kan ha gitt deg lavere lønn»
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