Inflexibility and the Stalled Progress of American Women in the Labor Market

Stefania Albanesi

No 21426, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Care responsibilities constrain women's labor supply, particularly when labor markets lack flexibility. This chapter examines how workplace inflexibility has shaped women's employment in the United States. I document two sources of inflexibility that contributed to the stagnation of women's labor force participation since the 1990s: changes in the earnings structure that penalize reduced work hours, and the absence of supportive family policies. The COVID-19 pandemic provides a natural experiment to assess the importance of flexibility. I show that the widespread adoption of remote work relaxed flexibility constraints, and employment growth during 2019–2023 was strongly associated with occupational flexibility for both men and women. However, as return-to-office mandates intensified after 2023, inflexibility became a significant predictor of employment declines only for women. This gender-specific pattern is consistent with women's greater care responsibilities and suggests that the availability of flexible work arrangements is a key determinant of their labor market outcomes.

Date: 2026-04
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