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Prof. Kai Li
Professor of Finance
Fellow of the Royal Society of Canada
Canada Research Chair in Corporate Governance
W. Maurice Young Chair in Finance
UBC Sauder School of Business
University of British Columbia

This paper explores the implications of external pressure to increase board gender diversity for female labor demand. Applying textual analysis to job ads in the US, we first show that firms with a higher share of female directors write less female-friendly job ads. This is especially true at firms that face greater pressure from their shareholders. Using the enactment of SB 826 in California as an exogeneous shock helps establish the causal effect of board gender quotas on female labor demand. Supplemental evidence from employee reviews and female employment reveals negative consequences beyond job ads. Overall, our results show that board gender quotas trigger backlashes in firms, worsening female labor market outcomes.