When Paid Work Gives in to Unpaid Care Work: Evidence from the Hedge Fund Industry under COVID-19

57 Pages Posted: 23 Jun 2021 Last revised: 19 Oct 2021

See all articles by Sara Ain Tommar

Sara Ain Tommar

Neoma Business School

Olga Kolokolova

University of Manchester - Alliance Manchester Business School

Roberto Mura

University of Manchester - Alliance Manchester Business School

Date Written: December 8, 2020

Abstract

We examine how childcare inequalities in the home affect the work productivity of female talent, using unique data on the family structures of hedge fund managers, and the exogenous shock from school closures during the early Covid-19 pandemic response. We find that female managers' ability to generate abnormal returns is curbed by 9% on average in the shock-month of school closures, providing a direct measure of the cost of unpaid care work. This effect is driven by mothers and especially mothers with young children. With increasing calls for more women representation in all layers of the economy and the efforts exerted towards that goal, there is reason for concern that these efforts might not factor in, as the pandemic has uncovered how women in general and mothers in particular bear both the burden of unpaid care work, and the subsequent cost to their paid work.

Keywords: Hedge funds, COVID-19, Gender bias, Unpaid care work

JEL Classification: G11, G14, G23

Suggested Citation

Ain Tommar, Sara and Kolokolova, Olga and Mura, Roberto, When Paid Work Gives in to Unpaid Care Work: Evidence from the Hedge Fund Industry under COVID-19 (December 8, 2020). Proceedings of Paris December 2021 Finance Meeting EUROFIDAI - ESSEC, Available at SSRN: https://ssrn.com/abstract=3865201 or http://dx.doi.org/10.2139/ssrn.3865201

Sara Ain Tommar

Neoma Business School ( email )

9 Rue d'Athènes
Paris, Paris 75009
France

Olga Kolokolova (Contact Author)

University of Manchester - Alliance Manchester Business School ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom
+441613062081 (Phone)

Roberto Mura

University of Manchester - Alliance Manchester Business School ( email )

Booth Street West
Manchester, Lancashire M15 6PB
United Kingdom

HOME PAGE: http://www.robertomura.com

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