Anti-Harassment Policy and the Startup Labor Market

Authors

• Jun Chen, University of Illinois at ChicagoFollow
• Song Ma, Yale School of Management; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)Follow
• Feng Zhang, Southern Methodist University (SMU) - Finance DepartmentFollow

Publication Date

11-12-2025

Abstract

This paper examines how anti-harassment reforms that weaken non-disclosure agreements (NDAs) in sexual harassment cases affect the startup labor market. Using a staggered difference-in-differences design and LinkedIn data on over 50,000 U.S. VCbacked startups from 2014–2022, we find that NDA reforms reduce female hiring by about 8% annually without affecting male hiring, with effects concentrated among junior women and in small or male-dominated startups. Treated firms also experience more male manager departures, promote more women, and receive less VC funding. While NDA-weakening laws raise perceived legal risk and reduce female hiring, they trigger organizational restructuring that advances women into leadership.

Document Type

Article

Keywords

JEL classification: G24, G38, H25, L26

Disciplines

Finance

Source

SMU Cox: Finance (Topic)

Language

English