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

Author

Listed:
  • Fariha Kamal

    (U.S. Census Bureau)

  • Asha Sundaram

    (University of Auckland)

  • Cristina J. Tello-Trillo

    (U.S. Census Bureau)

Abstract

We examine how the 1993 Family and Medical Leave Act (FMLA) impacts the gender composition at U.S. firms experiencing a negative demand shock. Combining changes in Chinese imports across industries between 2000 and 2003 and a sharp regression discontinuity to identify FMLA status, we find that an increase in import competition decreases the share of female employment, earnings, and promotions at FMLA relative to non-FMLA firms. This effect is driven by women in prime child-bearing ages and without college degrees and is pronounced at firms with all male managers. These results suggest that job-protected leave mandates may exacerbate gender inequalities in response to adverse shocks.

Suggested Citation

  • Fariha Kamal & Asha Sundaram & Cristina J. Tello-Trillo, 2026. "Family-Leave Mandates and Female Labor at U.S. Firms: Evidence from a Trade Shock," The Review of Economics and Statistics, MIT Press, vol. 108(4), pages 931-947, July.
    • Handle: RePEc:tpr:restat:v:108:y:2026:i:4:p:931-947
    DOI: 10.1162/rest_a_01436
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