Paid Leave Pays Off: The Effects of Paid Family Leave on Firm Performance

Benjamin Bennett, Isil Erel, Léa H. Stern and Zexi Wang

No 27788, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We explore how lowering labor market frictions for female workers affects corporate performance. Using the staggered adoption of state-level Paid Family Leave acts, we provide causal evidence on the value created by relieving frictions to accessing female talent, for private and public firms. Reduced turnover and an increase in female leadership are potential mechanisms that contribute to performance gains. Across specifications, our estimates indicate that treated establishments’ productivity increases by about 5% relative to neighbor control establishments. The treatment effect is larger when workers are in less religious counties and in those with more women of childbearing age.

JEL-codes: J16 J22 J24 J32 J78 M14 M51 (search for similar items in EconPapers)
Date: 2020-09
New Economics Papers: this item is included in nep-bec, nep-hrm and nep-lma
Note: CF LS
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Citations: View citations in EconPapers (3)

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