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I study the effects of US salary history bans which restrict employers frominquiring about job applicants' pay history during the hiring process, butallow candidates to voluntarily share information. Using adifference-in-differences design, I show that these policies narrowed thegender pay gap significantly by 2 p.p., driven almost entirely by an increasein female earnings. The bans were also successful in weakening theauto-correlation between current and future earnings, especially amongjob-changers. I provide novel evidence showing that when employers could nolonger nudge candidates for information, the likelihood of voluntarilydisclosing salary history decreased among job applicants and by 2 p.p. moreamong women. I then develop a salary negotiation model with asymmetricinformation, where I allow job applicants to choose whether to reveal payhistory, and use this framework to explain my empirical findings on disclosurebehavior and gender pay gap.

US Salary History Bans -- Strategic Disclosure by Job Applicants and the Gender Pay Gap