Just Ask Jenna Looks at Salaries

by Jenna C, ’26

Dear Jenna,

I just signed my contract for a summer job as a lifeguard. I’ll be working 40 hours a week and making the big bucks! But, I just talked to my friend and learned that she has a job babysitting full time, making double the amount of money. Why was I so excited about my job and now jealous after finding out about hers?

From, 
Second-Guessing My Summer Job

Dear Second-Guessing My Summer Job, 

What you are experiencing connects to an idea in economics called pay transparency, which refers to how open people and companies are about sharing salary information. In simple terms, it means that people have more visibility into what others are earning and how pay is determined. 

Before you knew what your friend was making, you evaluated your job on its own. You were focused on the fact that you had a steady summer job, were working full time, and earning your own money. In that moment, your pay felt fair.

Once you learned that your friend is making more, your perspective shifted. Even though your pay did not change at all, it now feels lower because you are seeing it in comparison to someone else’s. Pay transparency makes these differences more visible, which can make them feel more significant and personal. 

This is why pay transparency is often debated. It can be helpful because it pushes for fairness and holds employers accountable for how they pay people. But at the same time, it can also lead to frustration, since people naturally compare themselves to others once that information is out in the open. 

At the end of the day, your job is still the same job you were excited about. Pay transparency did not change your pay, it just changed how you see it. 

Best of luck!
Jenna 

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