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The Long-Run Effects of California's Paid Family Leave Act On Women's Careers and Childbearing: New Evidence from a Regression Discontinuity Design and U.S. Tax Data

Author

Listed:
  • Bailey, Martha J.

    (University of California, Los Angeles)

  • Byker, Tanya

    (Middlebury College)

  • Patel, Elena

    (University of Utah)

  • Ramnath, Shanthi

    (Federal Reserve Bank of Chicago)

Abstract

We use administrative tax data to analyze the cumulative, long-run effects of California's 2004 Paid Family Leave Act (CPFL) on women's employment, earnings, and childbearing. A regression-discontinuity design exploits the sharp increase in the weeks of paid leave available under the law. We find no evidence that CPFL increased employment, boosted earnings, or encouraged childbearing, suggesting that CPFL had little effect on the gender pay gap or child penalty. For first-time mothers, we find that CPFL reduced employment and earnings roughly a decade after they gave birth.

Suggested Citation

  • Bailey, Martha J. & Byker, Tanya & Patel, Elena & Ramnath, Shanthi, 2024. "The Long-Run Effects of California's Paid Family Leave Act On Women's Careers and Childbearing: New Evidence from a Regression Discontinuity Design and U.S. Tax Data," IZA Discussion Papers 16756, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16756
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    More about this item

    Keywords

    labor market; maternity leave; gender; leave taking; gender gap; regression discontinuity;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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