Abstract: This paper examines how anti-harassment legal reforms that weaken non-disclosure agreements (NDAs) in cases of workplace sexual harassment affect startups' hiring and organizational decisions. Using a staggered difference-in-differences design and LinkedIn data on over 80,000 U.S. venture-capital-backed startups from 2014–2022, we find that NDA reforms, although intended for employee protection, reduce female hiring by about 7%, with effects concentrated among junior women, who are statistically more prone to sexual harassment, and in small or male-dominated startups. The results apply to both the intensive and extensive margins of hiring female workers. Treated entrepreneurial firms also witness more departures of male managers, promote more women, and receive less VC funding. These results suggest that while NDA-weakening laws increase firms’ perceived legal risk and reduce female hiring, they also trigger internal restructuring that promotes women's advancement into leadership and may, over time, foster more accountable and inclusive organizational cultures.
Abstract: This paper examines the role of firms' intangible capital investments in fostering the growth of employee human capital and the subsequent spillover effects on other firms. Using U.S. Census Bureau employee-employer matched data, we provide the first direct evidence that firms' investments in intangibles significantly enhance the human capital of their employees, designating these firms as "human capital incubators." We develop a model in which workers’ preferences for skill development influence their career decisions, thereby shaping the labor supply to firms. Firms recognize this by investing in intangibles not only to boost output but also to attract talent. We validate the model by demonstrating that human capital incubation is positively correlated with firm productivity, profitability, and market power, as well as with greater inflows of younger workers. Our model estimation reveals that incubator firms capture 37% of the value generated from their investments in employees' human capital, while the remaining 63% of this value spills over to other firms that hire their workers. Additionally, 29% of the production value of intangible investment is embodied directly in the skills of employees.
Discussant: Abhinav Gupta, University of North Carolina-Chapel Hill
Abstract: Why do equally skilled women earn less than their male counterparts? Using detailed panel data on over 3,000 Canadian financial advisors over 13 years, we document a 40–50% gender pay gap that cannot be explained by differences in performance, effort, or client satisfaction. Female advisors charge identical fees, deliver comparable investment returns, and retain clients at equal rates—yet earn substantially less because they manage smaller client books. This disparity originates at career entry: female advisors begin with 47% less assets under management despite equivalent qualifications and financial expertise. These initial gaps persist throughout their careers, with female and male advisors exhibiting parallel growth trajectories. Quasi-random client reassignments reveal that clients assigned to female advisors actually exhibit higher retention, suggesting the market inefficiently allocates talent. The persistence stems from path dependence rather than ongoing discrimination—initial disadvantages compound through network effects and limited access to secondary book markets. Our findings demonstrate how even temporary barriers at entry can create permanent inequality in trust-based professional services.
