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Family-Leave Mandates and Female Labor at U.S. Firms: Evidence from a Trade Shock

Author

Listed:
  • Fariha Kamal
  • Asha Sundaram
  • Cristina J. Tello-Trillo

Abstract

We study the role of family-leave mandates in shaping the gender composition at U.S. firms that experience a negative demand shock. In a regression discontinuity framework, we compare firms mandated to provide job-protected leave under the Family and Medical Leave Act (FMLA) and firms that are exempt from the law (non-FMLA) following the post-2001 surge in Chinese imports. Using confidential microdata on matched employers and employees in the U.S. non-farm private sector, we find that between 2000 and 2003, an increase in import competition decreases the share of female workers at FMLA compared to non-FMLA firms. The negative differential effect is driven by female workers in prime childbearing years, with less than college education, and is strongest at firms with all male managers. We find similar patterns in changes in the female share of earnings and promotions. These results suggest that, when traditional gender norms prevail, adverse shocks may exacerbate gender inequalities in the presence of job-protected leave mandates.

Suggested Citation

  • Fariha Kamal & Asha Sundaram & Cristina J. Tello-Trillo, 2020. "Family-Leave Mandates and Female Labor at U.S. Firms: Evidence from a Trade Shock," Working Papers 20-25, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:20-25
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    File URL: https://www2.census.gov/ces/wp/2020/CES-WP-20-25.pdf
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    References listed on IDEAS

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    1. Bartel, Ann P. & Rossin-Slater, Maya & Ruhm, Christopher J. & Slopen, Meredith & Waldfogel, Jane, 2021. "The Impact of Paid Family Leave on Employers: Evidence from New York," IZA Discussion Papers 14262, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    FMLA; job-protected leave; gender gap; regression discontinuity; China shock; gender norms;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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