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Anti-Harassment Policy and the Startup Labor Market

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Listed:
  • Jun Chen
  • Song Ma
  • Feng Zhang

Abstract

This paper examines how anti-harassment reforms that weaken non-disclosure agreements (NDAs) in sexual harassment cases affect the startup labor market. Using a staggered difference-in-differences design and LinkedIn data on over 50,000 U.S. VC-backed startups from 2014--2022, we find that NDA reforms reduce female hiring by about 8% annually without affecting male hiring, with effects concentrated among junior women and in small or male-dominated startups. Treated firms also experience more male manager departures, promote more women, and receive less VC funding. While NDA-weakening laws raise perceived legal risk and reduce female hiring, they trigger organizational restructuring that advances women into leadership.

Suggested Citation

  • Jun Chen & Song Ma & Feng Zhang, 2026. "Anti-Harassment Policy and the Startup Labor Market," NBER Working Papers 35187, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:35187
    Note: CF LE LS PE POL PR
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    More about this item

    JEL classification:

    • G0 - Financial Economics - - General
    • J0 - Labor and Demographic Economics - - General
    • K0 - Law and Economics - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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