The family and medical leave act

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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?

Reference no: EM131103642

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