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The labor market impacts of America’s first paid maternity leave policy

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  • Timpe, Brenden

Abstract

This paper provides new evidence on the effect of a national expansion of paid maternity leave on the labor-market outcomes of women in the United States. I develop an identification strategy that exploits the staggered expansion of paid leave through short-term disability insurance in the 1960s and 1970s. The policy expanded leave-taking among new mothers but also precipitated a decrease in hourly wages, employment, and family income among women of child-bearing age. The results suggest that even modestly generous, widespread expansions of paid family leave policies have the potential to widen gender gaps in the labor market.

Suggested Citation

  • Timpe, Brenden, 2024. "The labor market impacts of America’s first paid maternity leave policy," Journal of Public Economics, Elsevier, vol. 231(C).
    • Handle: RePEc:eee:pubeco:v:231:y:2024:i:c:s0047272724000033
    DOI: 10.1016/j.jpubeco.2024.105067
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    More about this item

    Keywords

    Paid maternity leave; Labor market; Gender wage gap; Mandated benefits;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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