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

We examine how the 1993 Family and Medical Leave Act (FMLA) impacts the gender composition at U.S.

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.