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

Fariha Kamal, Asha Sundaram and Cristina Tello-Trillo

Working Papers from U.S. Census Bureau, Center for Economic Studies

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.

Keywords: FMLA; job-protected leave; gender gap; regression discontinuity; China shock; gender norms (search for similar items in EconPapers)
JEL-codes: F16 J08 J16 J18 J23 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2020-09
New Economics Papers: this item is included in nep-dem, nep-gen and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://www2.census.gov/ces/wp/2020/CES-WP-20-25.pdf First version, 2020 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:20-25

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