A new study reveals that extended employer-paid maternity leave policies could inadvertently cost women tech jobs. The counterintuitive findings call for refined policy designs to genuinely support gender equity in the workforce.
Employer-paid maternity leave policies, designed with good intentions, might be inadvertently barring women from technology roles, according to new research published in the INFORMS journal Management Science.
The study analyzed more than 4 million IT job applications across over 7,000 companies, unraveling the unintended consequences of such policies.
The research is based on the impact of a 2017 Indian law that increased paid maternity leave from 12 to 26 weeks for companies with 10 or more employees.
The investigation uncovered that less profitable companies are 22% less likely to interview female applicants since the policy change.
“Less profitable companies are 22% less likely to interview female applicants after the implementation of extended paid leave mandates, raising a bevy of significant concerns for employers and policymakers,” Sofia Bapna, a professor at the University of Minnesota, said in a news release.
The study’s findings come at a time of heightened global debate on paid family leave policies. In the United States, discussions continue around expanding paid leave, with New York recently implementing the nation’s first paid prenatal leave law on January 1, 2025.
“While the intent of the law was to support women’s participation in the workforce, our findings reveal a critical backfire,” Bapna added. “Companies that can’t absorb the cost of extended maternity leave are effectively closing the door on women before they even have a chance to prove themselves.”
Despite stringent legal protections against gender-based hiring discrimination in the United States, the study highlights a crucial reality: economic factors heavily influence employer behavior.
“As policymakers push for expanded leave programs, this research serves as a crucial warning: even well-meaning policies can cause harm if not carefully designed,” added Russell Funk, a professor in the Management and Entrepreneurship Department in the UMN Strategic Carlson School of Management. “Without complementary measures – such as anti-discrimination laws, shared parental leave and employer incentives – efforts to empower women could end up shutting them out instead,” Funk added.
The research team advises that any employer-paid leave policy should include safeguards against discriminatory hiring.
“Creating balanced policies that benefit both employers and employees is essential for achieving true equity in the workplace,” Funk concluded.
Source: INFORMS