Does Mandating Women on Corporate Boards Backfire?

When board gender quotas clash with gender stereotypes prevailing within an organization, do they trigger backlash and lead to worse female labor market outcomes? We examine staggered adoptions of quotas in Europe and document a significant drop in the share of female employment. Applying textual analysis to job ads in the US, we find that quota-exposed firms write less female-friendly job ads, suggesting a lower demand for female labor. This is especially true among firms that face less competition, lack female leadership, or are Republican-leaning. Evidence from employee reviews and labor-related violations pinpoints quota-triggered gender discrimination as the likely culprit