Feminist Firms

77 Pages Posted: 22 Nov 2019 Last revised: 5 Dec 2019

See all articles by Benjamin Bennett

Benjamin Bennett

Tulane University - A.B. Freeman School of Business

Isil Erel

Ohio State University (OSU) - Department of Finance

Lea Henny Stern

University of Washington - Michael G. Foster School of Business

Zexi Wang

Lancaster University

Date Written: November 19, 2019

Abstract

We examine whether reducing frictions in the labor market affects the performance of private and public firms. Using the staggered adoption of state-level Paid Family Leave acts, we provide causal evidence on the value created by relieving frictions to female talent allocation. The magnitude of firms’ improved performance is correlated with their exposure to the laws. We document that reduced turnover, increased productivity, and female leadership are important mechanisms leading to the observed performance gains.

Keywords: Firm Performance, Gender, Labor Force Participation, Paid Family Leave, Talent Allocation

JEL Classification: J16, J22, J24, J32, J78, M14, M51

Suggested Citation

Bennett, Benjamin and Erel, Isil and Stern, Lea Henny and Wang, Zexi, Feminist Firms (November 19, 2019). Charles A. Dice Center Working Paper No. 2019-29; European Corporate Governance Institute – Finance Working Paper No. 643/2019. Available at SSRN: https://ssrn.com/abstract=3490645 or http://dx.doi.org/10.2139/ssrn.3490645

Benjamin Bennett

Tulane University - A.B. Freeman School of Business ( email )

7 McAlister Drive
New Orleans, LA 70118
United States

HOME PAGE: https://sites.google.com/site/benjaminbennettfinance/home

Isil Erel (Contact Author)

Ohio State University (OSU) - Department of Finance ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

Lea Henny Stern

University of Washington - Michael G. Foster School of Business ( email )

Box 353200
Seattle, WA 98195-3200
United States

Zexi Wang

Lancaster University ( email )

Lancaster University Management School
Bailrigg
Lancaster, LA1 4YX
United Kingdom

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