Lecture Title: The Price of Health: Paid Sick Leave Mandates and Corporate Innovation

Speaker: Professor Shu Tao  

Director of the Finance Department, Business School, The Chinese University of Hong Kong

 Moderator: Professor Yu Minggui

      Dean of the School of Finance, Zhongnan University of Economics and Law

Date: December 18, 2023

      2:30 PM - 4:00 PM

Location: Wenquan Building South, Room 408

Abstract

Using the staggered implementation of state-level paid sick leave (PSL) mandates, we observe a robust and significant decline in corporate innovation following the adoption of PSL mandates. Our further analysis identifies two mechanisms for this negative impact. First, firms faced with potential increases in labor costs due to PSL mandates reduce the hiring of inventors, particularly high-quality ones. Second, innovation often requires collaboration among highly specialized inventors. As a result, the reduction in work hours due to PSL mandates has an amplified impact on inventor productivity due to disruptions in inventor coordination. Our findings demonstrate that PSL mandates, despite their positive social outcomes, can lead to unintended consequences for high-skill employees and the broader economy.

Speaker Introduction

Professor Shu Tao obtained his Ph.D. in Finance from the University of Texas at Austin in 2007. Since then, he has been teaching at the Terry College of Business, University of Georgia, serving in various roles including Assistant Professor of Finance, Tenured Associate Professor of Finance, and the McFadden Chair Professor of Finance. In June 2019, he joined the Chinese University of Hong Kong (Shenzhen) full-time, serving as the Associate Vice President, Deputy Dean of the Shenzhen Institute of Advanced Finance, and Chair Professor of Finance. Since August 2023, he has been fully affiliated with the Chinese University of Hong Kong, currently holding positions as the Feng Jingxi Finance Chair Professor, Director of the Finance Department at the CUHK Business School, and Co-Director of the Center for Capital Market and Asset Management at the Shenzhen Institute of Advanced Finance.

Organizer

School of Finance, Zhongnan University of Economics and Law

Institute of International Investment, Zhongnan University of Economics and Law