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I'm certainly not well versed in the literature but I do remember reading a study that showed Norway's open salary data led to people being less happy overall no matter how well compensated they were relative to their peers.

Balancing transparency with an individual's right to privacy is a tricky subject.



Conversely I've read many articles from organisations that have switched to an open book salary policy leading to an increase in employee happiness.


From my anecdotal experience and studies, this seems to not be the case:

https://www.wsj.com/articles/the-downside-of-full-pay-transp...

Also, defining the problem by first principles, this effect kind of makes sense. 80% of people think their performance is above average, which collides head-on with reality.

Add the effects of Group Bias and you have a recipe for constant infighting, jealousy and misery.




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