Job Market Paper
Silencing Salary Talk: How Salary History Bans Affect Corporate Investment and Performance
Abstract
We study how firms’ access to labor-market information affects investment and performance. Exploiting the staggered adoption of salary history bans, we find that firms reduce capital expenditures and R&D while improving investment efficiency. Productivity, profitability, and firm value rise in the short-to-medium run, though these gains attenuate over time.
