Paid Family Leave, Inventor Mobility, and Firm Innovation

40 Pages Posted: 28 Jul 2021 Last revised: 18 Jan 2023

See all articles by Yaling Jin

Yaling Jin

Southwestern University of Finance and Economics

Qifei Zhu

Nanyang Business School, Nanyang Technological University

Date Written: July 27, 2021

Abstract

We exploit the adoption of US state-level Paid Family Leave (PFL) laws to test whether family-friendly policies affect firm innovation. We find that PFL policies increase the innovation outputs of firms whose employees are more exposed to these laws. The stronger attraction and the higher retention of female inventors contribute to the output gains. Tests at the state level suggest that younger inventors move into states after PFL adoption, and the move-in inventors are generally more productive than the move-out inventors at the personal level. Further tests at inventor level show that females are less likely to drop out from the inventor career after PFL adoption. Overall, the behavior change in inventor career choices is the main channel through which PFLs affect firm innovation.

Keywords: Paid Family Leave, Gender, Innovation, Labor Mobility, Patent Citation

JEL Classification: G38, J13, J24, O31

Suggested Citation

Jin, Yaling and Zhu, Qifei, Paid Family Leave, Inventor Mobility, and Firm Innovation (July 27, 2021). Available at SSRN: https://ssrn.com/abstract=3894180 or http://dx.doi.org/10.2139/ssrn.3894180

Yaling Jin

Southwestern University of Finance and Economics ( email )

Chengdu
China

Qifei Zhu (Contact Author)

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore

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