A decade agoCalifornia passed a lawthat gave newparentssixweeks of(paritally) paid family leave (http://www.paidfamilyleave.org/). A recent study showed that, after the law was passed, the pay received by young women decreased by roughly the cost of the leave (to the employer).

a) Show how young women's wages and employment were affected by this law, on a supply/demand graph.

b) Explain how such a requirement could make young women worse off as a group, using the theory of compensating wage differentials. Do you think that is what happened in this particular case?