When Paid Work Gives in to Unpaid Care Work: Evidence from the Hedge Fund Industry under COVID-19

45 Pages Posted: 23 Jun 2021

See all articles by Sara Ain Tommar

Sara Ain Tommar

Neoma Business School

Olga Kolokolova

University of Manchester - Alliance Manchester Business School

Roberto Mura

University of Manchester - Manchester Business School

Date Written: December 8, 2020

Abstract

We examine how childcare inequalities in the home affect the work productivity of women, using unique data on the family structures of hedge fund managers, and the shock from school closures during the COVID-19 lockdowns. We show that funds with female managers miss out on a 7% excess return on average compared to male-only funds in the shock-month of school closures, providing a direct measure of the cost of unpaid care work. This cost increases with the proportion of mothers in the fund, especially mothers with young children. The performance of funds managed by fathers or women without children is not affected by school closures. With increasing calls for more women representation in all layers of the economy and the efforts exerted towards that goal, there is reason for concern that these efforts might not factor in, as the pandemic has uncovered how women bear both the burden of unpaid care work, and its subsequent cost to their paid work.

Keywords: Hedge funds, COVID-19, Gender bias, Unpaid care work

JEL Classification: G11, G14, G23

Suggested Citation

Ain Tommar, Sara and Kolokolova, Olga and Mura, Roberto, When Paid Work Gives in to Unpaid Care Work: Evidence from the Hedge Fund Industry under COVID-19 (December 8, 2020). Available at SSRN: https://ssrn.com/abstract=3865201 or http://dx.doi.org/10.2139/ssrn.3865201

Sara Ain Tommar

Neoma Business School ( email )

9 Rue d'Athènes
Paris, Paris 75009
France

Olga Kolokolova (Contact Author)

University of Manchester - Alliance Manchester Business School ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom
+441613062081 (Phone)

Roberto Mura

University of Manchester - Manchester Business School ( email )

Crawford House
Oxford Road
Manchester, Lancashire M13 9PL
United Kingdom
+44 (0) 161 275 4023 (Fax)

HOME PAGE: http://www.robertomura.com

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