Biblioteca

Abstract

We test whether men and women have the same degree of complementarity to capital using a policy obligating firms to fund childre for their female employees, if they employ more than 19 women. This policy generated bunching at the threshold, particularly when more enforced, in male-intensive industrial sectors and in larger firms. Firms that employ 19 women have a higher capital-to-men ratio than firms just above the threshold. Our framework suggests that the distortion in this ratio is consistent with women being less complementary with capital than men which is confirmed by our calibrated model.