The Wharton School, U. of Pennsylvania, United States
We demonstrate that changes in the local political environment impact startup applicant behavior. Using data from a leading job search platform for technology startups, we analyze application patterns before and after the Supreme Court’s ruling in Dobbs v. Jackson Women’s Health Organization in affected states. We find that following the ruling, the number of applications to jobs in trigger-law states (states where abortion became immediately illegal) dropped about 7% compared to states where abortion remained legal. The decline was most pronounced from applicants from protected states, and the decline occurred only for in-person jobs (remote jobs were unaffected). Finally, startups in trigger-law states had to offer 15% higher compensation to maintain application volumes. These findings indicate that while unexpected shifts in the local political environment may adversely impact startups’ talent attraction, flexible job designs that leverage remote work designs or offer wage premia may act in offsetting ways.
