The German Pay Transparency Act Does Not Achieve Its Goal

The German Pay Transparency Act (Entgelttransparenzgesetz) is intended to help enforce the principle of equal pay for women and men doing equal work or work of equal value. After the second evaluation, it is clear that this is not being achieved with the existing instruments of the law. Without major changes, the law remains largely ineffective - while at the same time imposing substantial bureaucratic requirements on firms. This article describes the results of the second evaluation and shows possible reforms.