The problem with disclosing income

I've been doing some reading recently about the issue about disclosing one's income during an interview. The problem is that it give the employer an incentive to underpay you knowing your payment threshold. I've been on both sides of fence recently, knowing what pay looks like in the finance world thanks to a few contacts I was able to target for price at par with other people in the industry. Unfortunately things didn't work out as they had someone without a job that was willing to take the job, but that was OK. I would much rather not take a job if I knew I was going to be underpaid -- because one of the reasons for moving to a new position is to leverage your skills for a higher salary.

Since that deal had just recently fell through, I've just been introduced to some recruitment agencies and in the process of sending out applications for new jobs. I decided this time, that I would see what happens if I put something close to my real salary. I was soon contacted by a representative that would pass my resume to a few other positions. The guy quickly asked about my salary inspirations and I gave him my ball park number, he immediately balked at the idea of me looking for a 40%~50% salary increase, citing that I had a much lower salary listed. The moral of the story here is to not disclose your salary or put down a higher number.

I had qualms at first about inflating my salary before, but after seeing this reaction, it is an unfortunate necessity of the negotiation process.