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The Effects of Paid Family Leave in California on Labor Market Outcomes

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  • Charles L. Baum
  • Christopher J. Ruhm

Abstract

Using data from the 1997 cohort of the National Longitudinal Survey of Youth (NLSY-97), we examine the effects of California’s first in the nation government-mandated paid family leave program (CA-PFL) on mothers’ and fathers’ use of leave during the period surrounding child birth, and on the timing of mothers’ return to work, the probability of eventually returning to pre-childbirth jobs, and subsequent labor market outcomes. Our results show that CA-PFL raised leave-taking by around 2.4 weeks for the average mother and just under one week for the average father. The timing of the increased leave use – immediately after birth for men and around the time that temporary disability insurance benefits are exhausted for women – is consistent with causal effects of CA-PFL. Rights to paid leave are also associated with higher work and employment probabilities for mothers nine to twelve months after birth, possibly because they increase job continuity among those with relatively weak labor force attachments. We also find positive effects of California’s program on hours and weeks of work during their child’s second year of life and possibly also on wages.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19741.

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Date of creation: Dec 2013
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Handle: RePEc:nbr:nberwo:19741

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  1. Pinka Chatterji & Sara Markowitz, 2004. "Does the Length of Maternity Leave Affect Maternal Health?," NBER Working Papers 10206, National Bureau of Economic Research, Inc.
  2. Rafael Lalive & Josef Zweimüller, 2009. "How does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments," The Quarterly Journal of Economics, MIT Press, vol. 124(3), pages 1363-1402, August.
  3. Michael Baker & Kevin Milligan, 2008. "How Does Job-Protected Maternity Leave Affect Mothers' Employment?," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 655-691, October.
  4. Jane Waldfogel, 1999. "The impact of the family and medical leave act," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(2), pages 281-302.
  5. Sakiko Tanaka, 2005. "Parental leave and child health across OECD countries," Economic Journal, Royal Economic Society, vol. 115(501), pages F7-F28, 02.
  6. Michael Baker & Kevin Milligan, 2010. "Evidence from Maternity Leave Expansions of the Impact of Maternal Care on Early Child Development," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
  7. Maria Hanratty & Eileen Trzcinski, 2009. "Who benefits from paid family leave? Impact of expansions in Canadian paid family leave on maternal employment and transfer income," Journal of Population Economics, Springer, vol. 22(3), pages 693-711, July.
  8. Wen-Jui Han & Christopher Ruhm & Jane Waldfogel, 2007. "Parental Leave Policies and Parents' Employment and Leave-Taking," NBER Working Papers 13697, National Bureau of Economic Research, Inc.
  9. Rossin, Maya, 2011. "The effects of maternity leave on children's birth and infant health outcomes in the United States," Journal of Health Economics, Elsevier, vol. 30(2), pages 221-239, March.
  10. Ruhm, Christopher J., 2000. "Parental leave and child health," Journal of Health Economics, Elsevier, vol. 19(6), pages 931-960, November.
  11. Christopher J. Ruhm, 1996. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," NBER Working Papers 5688, National Bureau of Economic Research, Inc.
  12. Lawrence M. Berger & Jane Waldfogel, 2004. "Maternity leave and the employment of new mothers in the United States," Journal of Population Economics, Springer, vol. 17(2), pages 331-349, 06.
  13. Wen-Jui Han & Jane Waldfogel, 2003. "Parental leave: The impact of recent legislation on parents’ leave taking," Demography, Springer, vol. 40(1), pages 191-200, February.
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