Laws meant to limit workplace harassment have had unintended consequences

Laws that restrict non-disclosure agreements designed to protect victims of harassment led to an 8% drop in female hiring at venture-backed startups. A study led by Song Ma, a professor of finance and entrepreneurship at the Yale School of Management finds that the decline affects mainly younger women, who studies show are more vulnerable to sexual harassment, while the hiring of senior women remains steady. “This is consistent with prior studies documenting that junior women are more likely to be victims of sexual harassment,” Ma notes. “Hiring of senior women remains largely unchanged.” Firms appear to cut back on hiring early-career women due to increased legal risks.