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Does Paid Family Leave Reduce Nursing Home Use? The California Experience

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  • Kanika Arora
  • Douglas A. Wolf

Abstract

The intent of Paid Family Leave (PFL) is to make it financially easier for individuals to take time off from paid work to care for children and seriously ill family members. Given the linkages between care provided by family members and the usage of paid services, we examine whether California's PFL program influenced nursing home utilization in California during the 1999 to 2008 period. This is the first empirical study to examine the effects of PFL on long†term care patterns. Multivariate difference†in†difference estimates across alternative comparison groups provide consistent evidence that the implementation of PFL reduced the proportion of the elderly population in nursing homes by 0.5 to 0.7 percentage points. Our preferred estimate, employing an empirically†matched group of control states, finds that PFL reduced nursing home usage by about 0.65 percentage points. For California, this represents an 11 percent relative decline in elderly nursing home utilization.

Suggested Citation

  • Kanika Arora & Douglas A. Wolf, 2018. "Does Paid Family Leave Reduce Nursing Home Use? The California Experience," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 37(1), pages 38-62, January.
    • Handle: RePEc:wly:jpamgt:v:37:y:2018:i:1:p:38-62
    DOI: 10.1002/pam.22038
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    Cited by:

    1. Courtney Coile & Maya Rossin-Slater & Amanda Su, 2022. "The Impact of Paid Family Leave on Families with Health Shocks," NBER Working Papers 30739, National Bureau of Economic Research, Inc.
    2. Anand, Priyanka & Dague, Laura & Wagner, Kathryn L., 2022. "The role of paid family leave in labor supply responses to a spouse's disability or health shock," Journal of Health Economics, Elsevier, vol. 83(C).
    3. Duha T. Altindag & Elif S. Filiz & Erdal Tekin, 2020. "Does It Matter How and How Much Politicians are Paid?," Economica, London School of Economics and Political Science, vol. 87(348), pages 1105-1132, October.
    4. Rodgers, Luke P., 2020. "The impact of paid family leave on household savings," Labour Economics, Elsevier, vol. 67(C).
    5. Braga, Breno & Butrica, Barbara A. & Mudrazija, Stipica & Peters, H.E., 2022. "Impacts of State Paid Family Leave Policies for Older Workers with Spouses or Parents in Poor Health," IZA Discussion Papers 15007, Institute of Labor Economics (IZA).
    6. Almuhaisen, Abdulmohsen & Amuedo-Dorantes, Catalina & Furtado, Delia, 2023. "Immigration Enforcement and the Institutionalization of Elderly Americans," IZA Discussion Papers 16357, Institute of Labor Economics (IZA).
    7. Amitabh Chandra & Courtney Coile & Corina Mommaerts, 2023. "What Can Economics Say about Alzheimer's Disease?," Journal of Economic Literature, American Economic Association, vol. 61(2), pages 428-470, June.
    8. Heidi I. Hartmann & Jeffrey Hayes, 2021. "Estimating benefits: Proposed national paid family and medical leave programs," Contemporary Economic Policy, Western Economic Association International, vol. 39(3), pages 537-556, July.
    9. Liu, Yinan & Zai, Xianhua, 2022. "The Unintended Effect of Medicaid Aging Waivers on Informal Caregiving," EconStor Preprints 249566, ZBW - Leibniz Information Centre for Economics.
    10. Yinan Liu & Emma Zai, 2023. "The unintended effect of Medicaid aging waivers on informal caregiving," MPIDR Working Papers WP-2023-006, Max Planck Institute for Demographic Research, Rostock, Germany.

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