The family and medical leave act of 1993 fmla guaranteed


The Family and Medical Leave Act of 1993 (FMLA) guaranteed maternity leave to many working women across the U.S. However, the law only applied to firms with 50-or-more employees; employees of smaller firms were not covered by the FMLA. Suppose that providing maternity leave costs firms $5/hour for each new mother, and women value the benefit at $3/hour. Graphically show the predicted wage and employment effects of the law according to neoclassical theory. How do the predictions change if women value the benefit at $5/hour?

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Business Economics: The family and medical leave act of 1993 fmla guaranteed
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