[Annotated] Firms should make more information about salaries public

Making pay^[각주:1] more transparent^[각주:2] 

Swedes discuss their incomes with a frankness that^[각주:3] would horrify^[각주:4] Britons or Americans. They have little reason to be coy^[각주:5]; in Sweden you can learn a stranger's salary^[각주:6] simply by ringing^[각주:7] the tax authorities^[각주:8] and asking. Pay transparency^[각주:9] can be a potent weapon against^[각주:10] persistent inequities^[각주:11]. When hackers published e-mails from^[각주:12] executives at Sony Pictures, a file studio, the world learned that some of Hollywood's most bankable^[각주:13] female stars earned less than their male co-stars^[각주:14]. The revelation^[각주:15] has since helped women in the industry drive harder bargains^[각주:16]. Yet outside Nordic^[각주:17] countries transparency faces fierce resistance^[각주:18]. Donald Trump recently cancelled a rule set by Barack Obama requiring large firms to^[각주:19] provide more pay data to anti-discrimination regulators^[각주:20]. Even those less temperamentally^[각주:21] averse to sunlight than^[각주:22] Mr Trump balk at what^[각주:23] can seem an intrusion into^[각주:24] a private matter. That is a shame. Despite the discomfort that^[각주:25] transparency can cause, it would be better to publish more information.

There is a straightforward^[각주:26] economic argument for making pay public. A salary is a price - that of an individual worker's labor - and markets work best when^[각주:27] prices are known. Public pay data should help people make better decisions about which skills to acquire^[각주:28] and where to work. Yet experiments with transparency are motivated only rarely by^[각주:29] a love of market efficiency^[각주:30], and more often by worry about inequality. In the early 1990s, it was outrage at soaring executive salaries which led American regulators^[각주:31] to demand more disclosure of^[각주:32] CEO's pay. Such transparency does not always work as intended. Compensation^[각주:33] exploded in^[각주:34] the 1990s, as firms worried that markets would interpret skimpy^[각주:35] pay-packets^[각주:36] as^[각주:37] an indicator of the quality of executive hires^[각주:38].

Despite this, bosses tend to oppose transparency, for understandable reasons. Firms have an easier time in pay negotiations when they know more about salaries than workers do. What is more^[각주:39], shining a light on pay gaps can poison^[각주:40] morale^[각주:41], as some workers learn that they earn substantially^[각주:42] less than their peers. A study of employees at the University of California, for instance, found that when workers were given access to a database listing the salary of every public employee, job satisfaction among^[각주:43] those on relatively low wages fell. In industries in which competition for^[각주:44] talented workers is intense, the pernicious effects on^[각주:45] morale of unequal pay create an incentive to split the high-wage parts of^[각주:46] the business from the rest. Research published in 2016 concluded that diverging pay between^[각주:47] firms (as opposed to within^[각주:48] them) could account for most of the increase in American inequality in recent decades. That divergence^[각주:49] in turn^[각주:50] resulted from^[각주:51] increased segregation of^[각주:52] workers into high- and low- wage firms. 

Yet transparency increases dissatisfaction not because it introduces information where there was none before, but because it corrects misperceptions^[각주:53]. Surveys routinely find that workers overestimate^[각주:54] their performance^[각주:55] and pay relative to their peers'. This is true across economies as well as within firms. In 2001, tax records in Norway were put online, allowing anyone to see easily what other Norwegians had earned and paid in tax. Reported happiness among the rich rose significantly, while the well-being of^[각주:56] poorer people fell as they learned their true position on the economic ladder. Better information changes behavior. Low-paid workers at the University of California became more likely to seek new jobs after salary data became public. In Norway the poor became more likely to support redistribution^[각주:57]. 

Transparency might threaten the function of capitalist economies^[각주:58] if people were implacably^[각주:59] opposed to^[각주:60] pay gaps, but they are not. A study published in 2015 of factory workers in India, for instance, found that unequal pay worsened morale^[각주:61] and led to reduced effort when workers could not see others' contributions^[각주:62], but not when productivity differences^[각주:63] were easily observable^[각주:64]. 

Yet in the modern economy, individual contributions are often devilishly^[각주:65] hard to assess^[각주:66]. Simple theory suggests that workers are paid according to^[각주:67] their productivity. Were they to earn more, their employers would lose money; were they to earn less, other firms could profit by^[각주:68] hiring away^[각주:69] underpaid employees^[각주:70]. But although it is easy enough to see how many shirts a textile worker^[각주:71] stitches in an hour^[각주:72], it is much harder to evaluate the contribution of one member of a team that has spent years developing new software. When it is difficult to observe important parts of a job, economists believe that trying to link pay closely to narrow measures of performance^[각주:73] can be misguided^[각주:74]. Workers inevitably neglect murky^[각주:75] but critical tasks^[각주:76] in favor of^[각주:77] those the boss can easily quantify^[각주:78]. In the knowledge economy^[각주:79], therefore, the relationship between pay and productivity is often loose^[각주:80]. 

Pay gaps are often nonetheless^[각주:81] justified^[각주:82]. Workers with scarce^[각주:83] and valuable skills can easily threaten to leave, and can therefore bargain for higher pay^[각주:84]. Those fat^[각주:85] pay-packets^[각주:86] serve the economy by encouraging young workers to develop skills that are in short supply^[각주:87] - provided, of course, that they know how much they can expect to earn. But the difficulty in observing productivity allows factors to influence pay, such as office politics, discrimination or a simple tendency to silence^[각주:88] the squeakiest wheels with^[각주:89] grease^[각주:90].

Open-plan offices^[각주:91]

Not every country will opt for^[각주:92] radical transparency. Even Nordic governments continue to tweak their policies^[각주:93]: in 2014 Norway banned anonymous searching of^[각주:94] its tax database, so citizens could see who had nosed around^[각주:95] their finances. But increased openness about^[각주:96] pay could improve both the fairness^[각주:97] and the functioning of^[각주:98] the economy. When pay is public, it is not the justifiable^[각주:99] inequities that create the most discomfort^[각주:100], but those firms cannot defend. 

1. pay ; [U] 급료, 보수 [본문으로]
2. transparent ; 2. (변명・거짓말 등이) 속이 뻔히 들여다보이는, 명백한, 투명한 ;; 3. (언어・정보 등이) 명료한, 알기 쉬운 [본문으로]
3. frankness ; [U] 솔직, 터놓음 [본문으로]
4. horrify ; [동사] hor・ri・fies , hor・ri・fy・ing , hor・ri・fied , hor・ri・fied 몸서리치게[소름끼치게] 만들다 [본문으로]
5. coy ; 2. ~ (about sth) (어떤 것이나 자기 신상에 대해서) 얘기를 잘 안 하는 [본문으로]
6. learn ; 2. ~ (of/about) sth ~을 알게 되다 [본문으로]
7. ring ; (rang / rӕN / rung / rVN /), (참고: alarm n.) 1. TELEPHONE | (call 美, 英) ~ sb/sth (up) (英 또한) 전화하다, 전화를 걸다 [본문으로]
8. tax authority ; 조세 당국 ;; authorities ; [명사] 당국, 관계자, 정부당국 [본문으로]
9. transparency ; 3. [U] (변명・거짓말 따위가) 속이 빤히 들여다보임[명백함] ;; 4. [U] (상황・주장 따위의) 명료성 [본문으로]
10. potent ; 2. (힘이) 센[강한] ;; 참고 ; impotent [본문으로]
11. persistent ; 2. 끊임없이 지속[반복]되는 [본문으로]
12. publish ; 3. [타동사][VN] (인터넷에) 발표[공개/출판]하다 [본문으로]
13. bankable ; [형용사] (비격식) 돈벌이가 되는 [본문으로]
14. co-star ; [명사] (주연급으로) 함께 공연한 배우, 공동 주연 [본문으로]
15. revelation ; (참고: reveal) 1. [C] ~ (about/concerning sth) | ~ (that…) 폭로(된 사실) [본문으로]
16. drive[strike] a hard bargain ; (흥정 등에서) 세게 밀어붙이다 [본문으로]
17. nordic ; 1. 북유럽 국가의 2. 유럽 인종의(큰 키, 푸른 눈, 금발이 특징) [본문으로]
18. fierce[determined, stiff, stubborn, strong] resistance ; 완강한[심한] 저항 [본문으로]
19. require ; 2. ~ sth (of sb) (흔히 수동태로) (특히법・규칙등에 따라)요구하다 [본문으로]
20. regulator ; 1. (산업・상업 분야의) 규제[단속] 기관[담당자] [본문으로]
21. temperamentally ; [부사] 기질적으로, 성질상, 흥분하기 쉽게 [본문으로]
22. averse to ; …을 싫어하여. [본문으로]
23. balk at ; …에 망설이다. ;; (특히 美) 동의어 ; baulk (英) (美 주로 balk) ;; 1. [자동사][V] ~ (at sth) 멈칫거리다, 꺼리다 [본문으로]
24. an intrusion into ; …에의 침입.;; intrusion ; [U , C], [~ (into/on/upon sth)] 1. (개인 사생활 등에 대한) 침범[침해](하는 것) [본문으로]
25. discomfort ; 3. [C] (격식) 불편하게 하는 것 [본문으로]
26. straightforward ; 1. 간단한, 쉬운, 복잡하지 않은 [본문으로]
27. work best ; 가장 효과가 좋다, 가장 적합하다, 제일 잘 된다, 가장 잘 한다 [본문으로]
28. acquire ; [vn], (격식) 1. (노력・능력으로) 습득하다[얻다] [본문으로]
29. motivate ; 1. [타동사][VN] [흔히 수동태로] (행동 등의) 이유[원인]가 되다 [본문으로]
30. market efficiency ; (경제) 시장효율성 ;; Market efficiency refers to the degree to which stock prices and other securities prices reflect all available, relevant information. Market efficiency was developed in 1970 by economist Eugene Fama, whose theory of efficient market hypothesis (EMH) stated it is not possible for an investor to outperform the market because all available information is already built into all stock prices. Investors who agree with this statement tend to buy index funds that track overall market performance and are proponents of passive portfolio management. [본문으로]
31. regulator ; 1. (산업・상업 분야의) 규제[단속] 기관[담당자] [본문으로]
32. disclosure ; (격식) 1. [U] 폭로 [본문으로]
33. compensation ; [~ (for sth)] 1. [U , C] 보상(금) [본문으로]
34. explode ; 6. INCREASE QUICKLY | [자동사][V] 폭발적으로 증가하다 [본문으로]
35. skimpy ; (skimp・ier , skimpi・est) 2. (못마땅함) (양・크기 등이) 너무 적은[작은] [본문으로]
36. pay-packet ; [명사] 봉급[급여] 봉투; 봉급[급여] 액수 [본문으로]
37. interpret ; 2. [타동사][VN] ~ sth (as sth) (특정한 뜻으로) 이해[해석]하다 ;; 참고 ; misinterpret [본문으로]
38. hire ; 2. [C] (특히 美) (회사의) 신입 사원 [본문으로]
39. what is more ; 더욱이[게다가] [본문으로]
40. poison ; 3. 나쁜 영향을 주다, 해치다 [본문으로]
41. morale ; [U] 사기, 의욕 [본문으로]
42. substantially ; 1. 상당히, 많이 ;; 2. (격식) 주로, 대체로 [본문으로]
43. job satisfaction ; 작업[직업] 만족도[감] [본문으로]
44. competition for ; …을 얻기 위한 경쟁. [본문으로]
45. pernicious ; [형용사] (격식) 치명적인(특히 그 영향이 서서히 알아차리기 힘들게 진행되는 경우) [본문으로]
46. incentive ; [C , U] ~ (for/to sb/sth) (to do sth) (어떤 행동을 장려하기 위한) 장려[우대]책 [본문으로]
47. diverging ; [형용사] 동의어 ;; DIVERGENT ;; 1. 분기하는; 갈라지는(opp. convergent); (관습 등에서) 일탈한 ;; 2. <의견 등이> 다른 ;; 3. [수학] 발산의; [기하] 방사상의 [본문으로]
48. as opposed to ; …와는 대조적으로; …이 아니라 [본문으로]
49. divergence ; [UC] 분기; 일탈(逸脫); (의견 등의) 차이; [수학·물리] 발산; [심리] 확산; [식물] 잎과 잎 사이의 거리; 방산[발산]성 [본문으로]
50. in turn ; 2. 결국[결과적으로] [본문으로]
51. result from ; …이 원인이다 [본문으로]
52. segregation ; [U] 1. (인종・종교・성별에 따른) 분리[차별] (정책) ;; 2. (격식) 구분, 분리 [본문으로]
53. misperception ; [명사] 오인, 오해. [본문으로]
54. overestimate ; [타동사][VN] 과대평가하다 [본문으로]
55. performance ; 3. [U , C] 실적, 성과 ;; 4. [U , sing.] (격식) (과제 등의) 수행[실행] [본문으로]
56. well-being ; [U] (건강과) 행복, 웰빙 ;; 콩글리시가 아니라 실제로 사용하는 표현임을 확인 [본문으로]
57. redistribution ; [U, C] 1. 재분배, 재배급, 재배포; 〈경제〉 재분배. [본문으로]
58. capitalist economy ; (경제) 자본주의경제 [본문으로]
59. implacably ; [부사] 무자비하게 ; 집념이 강하게. [본문으로]
60. be[stand] opposed to ; …에 반대하다, …의 반대편에 서다 [본문으로]
61. worsen ; [동사] 악화되다; 악화시키다 [본문으로]
62. contribution ; 3. [C] [주로 단수로] 기여, 이바지; 원인 제공 [본문으로]
63. productivity difference ; 생산성 차이, 생산성 격차 [본문으로]
64. observable ; [형용사] 식별[관찰]할 수 있는 [본문으로]
65. devilishly ; [부사] (구식) 지독히 [본문으로]
66. assess ; 2. [타동사][VN] ~ sth (at sth) (가치・양을) 평가[사정]하다 [본문으로]
67. according to ; [전치사] 2. (지시・합의 등에) 따라 [본문으로]
68. profit ; [동사] ~ (by/from sth) (격식) 이득[이익]을 얻다[주다] [본문으로]
69. hire sb away (from sb or sth) ;; [for one] to get someone to quit working for some other employer and begin working for one [본문으로]
70. underpaid ; [형용사] (하는 일에 비해) 제대로 보수를 못 받는[급여가 적은] [본문으로]
71. textile worker ; 직물공 [본문으로]
72. stitch ; [vn] 1. 바느질하다, 꿰매다, 깁다 [본문으로]
73. narrow ; 3. (관점 등이) 좁은, 편협한 [본문으로]
74. misguide ; [타동사] 그릇되게 지도하다, 잘못 이끌다(mislead); 잘못 인식시키다 ((about)) [본문으로]
75. murky ; (murk・ier , murki・est) 1. (액체가) (진흙 등으로) 흐린[탁한] ;; 2. (대기・불빛 등이) (연기・안개 등으로 불쾌하게) 어두컴컴한[흐린] ;; 3. (못마땅함 또는 유머) (사람의 행동・성격이) 어두운 [본문으로]
76. critical ; 2. IMPORTANT | (앞으로의 상황에 영향을 미친다는 점에서) 대단히 중요한[중대한] [본문으로]
77. in favor of ; 2. …의 이익이 되도록, …을 위하여 [본문으로]
78. quantify ; [타동사][VN] (quan・ti・fies , quan・ti・fy・ing , quan・ti・fied , quan・ti・fied) 양을 나타내다, 수량화하다 [본문으로]
79. knowledge economy ; [NOUN] an economy in which information services are dominant as an area of growth [본문으로]
80. loose ; 6. NOT STRICT/EXACT | (조직・통제가) 느슨한 [본문으로]
81. nonetheless ; [부사] ˌnone the ˈless (격식) 그렇기는 하지만, 그렇더라도 [본문으로]
82. justify ; 2. ~ sth/yourself (to sb) 정당화시키다[하다], 해명[옹호]하다 [본문으로]
83. scarce ; [형용사] scar・cer , scar・cest 부족한, 드문 [본문으로]
84. bargain for ; 1. 상담하다, 흥정하다 [본문으로]
85. fat ; (fat・ter , fat・test) 3. [명사 앞에만 씀] (비격식) (양・액수가) 많은 [본문으로]
86. pay packet ; (또한 'wage packet) [명사] 봉급[급여] 봉투; 봉급[급여] 액수 [본문으로]
87. be in short[excessive] supply ; 공급이 부족하다[과잉이다] [본문으로]
88. silence ; [vn], (참고: heavy adj.) 1. 조용히 하게 하다 [본문으로]
89. squeaky ; [형용사] 끼익[깩/찍] 하는 소리가 나는 [본문으로]
90. grease ; [U] 1. (끈적끈적한) 기름, 그리스(기계의 윤활유) 참고 elbow grease [본문으로]
91. open-plan ; [형용사] 오픈 플랜식의(건물 내부가 벽으로 나뉘지 않은), (건축) 오픈 플랜 ((다양한 용도를 위해 칸막이를 최소한으로 줄인 건축 평면)) [본문으로]
92. opt for ; ~을 선택하다 ;; to choose something; to make a decision about something [본문으로]
93. tweak ; 2. (기계・시스템 등을 약간) 수정[변경]하다 [본문으로]
94. anonymous searching ; 흐름상 "자료검색자의 신분을 밝히지 않고 해당 자료를 검색하는 것" 정도의 의미 [본문으로]
95. nose around[about] (for sth); (특히 사람에 대한) 정보를 캐고 다니다 ;; to go around trying to find out something about somebody/something, particularly when you should not do this [본문으로]
96. openness ; [U] 1. 솔직함 ;; 2. 마음이 열려 있음, 편협하지 않음 ;; 3. (막히거나 가려져 있지 않고) 열려[트여] 있음 [본문으로]
97. fairness ; [U] 1. 공정성 [본문으로]
98. functioning ; [명사] 기능, 작용 [본문으로]
99. justifiable ; [형용사] 정당한[타당한] (이유가 있는) [본문으로]
100. discomfort ; 3. [C] (격식) 불편하게 하는 것 [본문으로]