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The Effects of California's Paid Family Leave Program on Mothers’ Leave‐Taking and Subsequent Labor Market Outcomes

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  • Maya Rossin‐Slater
  • Christopher J. Ruhm
  • Jane Waldfogel

Abstract

This analysis uses March Current Population Survey data from 1999-2010 and a differences-in-differences approach to examine how California's first in the nation paid family leave (PFL) program affected leave-taking by mothers following childbirth, as well as subsequent labor market outcomes. We obtain robust evidence that the California program more than doubled the overall use of maternity leave, increasing it from around three to six or seven weeks for the typical new mother – with particularly large growth for less advantaged groups. We also provide suggestive evidence that PFL increased the usual weekly work hours of employed mothers of one-to-three year-old children by 6 to 9% and that their wage incomes may have risen by a similar amount.
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Suggested Citation

  • Maya Rossin‐Slater & Christopher J. Ruhm & Jane Waldfogel, 2013. "The Effects of California's Paid Family Leave Program on Mothers’ Leave‐Taking and Subsequent Labor Market Outcomes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(2), pages 224-245, March.
  • Handle: RePEc:wly:jpamgt:v:32:y:2013:i:2:p:224-245
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    References listed on IDEAS

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    1. Carneiro, Pedro & Løken, Katrine & Salvanes, Kjell G, 2010. "A flying start? Long term consequences of maternal time investments in children during their first year of life," CEPR Discussion Papers 8124, C.E.P.R. Discussion Papers.
    2. Baker, Michael & Milligan, Kevin, 2008. "Maternal employment, breastfeeding, and health: Evidence from maternity leave mandates," Journal of Health Economics, Elsevier, vol. 27(4), pages 871-887, July.
    3. Christopher J. Ruhm, 1998. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 285-317.
    4. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    5. Paul Gregg & Maria Gutierrez-Domênech & Jane Waldfogel, 2007. "The Employment of Married Mothers in Great Britain, 1974-2000," Economica, London School of Economics and Political Science, vol. 74(296), pages 842-864, November.
    6. Liu Qian & Skans Oskar Nordstrom, 2010. "The Duration of Paid Parental Leave and Children's Scholastic Performance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-35, January.
    7. Florence Jaumotte, 2004. "Labour Force Participation of Women: Empirical Evidence on The Role of Policy and Other Determinants in OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2003(2), pages 51-108.
    8. Burgess, Simon & Gregg, Paul & Propper, Carol & Washbrook, Elizabeth, 2008. "Maternity rights and mothers' return to work," Labour Economics, Elsevier, vol. 15(2), pages 168-201, April.
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    Cited by:

    1. Ji Young Kang, 2017. "The Danger of a One-sided Story: The Effects of Production Regimes and Family Policies on the Gender Employment Gap," LIS Working papers 709, LIS Cross-National Data Center in Luxembourg.
    2. Natalia Ramírez Bustamante & Ana Maria Tribin Uribe & Carmiña O. Vargas, 2015. "Maternity and Labor Markets: Impact of Legislation in Colombia," BORRADORES DE ECONOMIA 012610, BANCO DE LA REPÚBLICA.
    3. Pichler, Stefan & Ziebarth, Nicolas R., 2017. "The pros and cons of sick pay schemes: Testing for contagious presenteeism and noncontagious absenteeism behavior," Journal of Public Economics, Elsevier, vol. 156(C), pages 14-33.
    4. Stefan Pichler & Nicolas Ziebarth, 2016. "The Pros and Cons of Sick Pay Schemes: Testing for Contagious Presenteeism and Shirking Behavior," NBER Chapters,in: Social Insurance Programs (Trans-Atlantic Public Economic Seminar - TAPES) National Bureau of Economic Research, Inc.
    5. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 205-230, Winter.
    6. Tirthatanmoy Das & Solomon W. Polachek, 2015. "Unanticipated Effects Of California'S Paid Family Leave Program," Contemporary Economic Policy, Western Economic Association International, vol. 33(4), pages 619-635, October.
    7. Bassford, Micaela & Fisher, Hayley, 2016. "Bonus babies? The impact of paid parental leave on fertility intentions," Working Papers 2016-04, University of Sydney, School of Economics.
    8. Pichler, Stefan & Ziebarth, Nicolas R., 2015. "The Pros and Cons of Sick Pay Schemes: A Method to Test for Contagious Presenteeism and Shirking Behavior," IZA Discussion Papers 8850, Institute for the Study of Labor (IZA).
    9. Huang, Rui & Yang, Muzhe, 2015. "Paid maternity leave and breastfeeding practice before and after California's implementation of the nation's first paid family leave program," Economics & Human Biology, Elsevier, vol. 16(C), pages 45-59.
    10. Maya Rossin-Slater, 2017. "Maternity and Family Leave Policy," NBER Working Papers 23069, National Bureau of Economic Research, Inc.
    11. Schmitz, Sebastian & Kluve, Jochen, 2014. "Parental Benefits and Mothers Labor Market Outcomes in the Medium Run," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100567, Verein für Socialpolitik / German Economic Association.
    12. Janice Compton & Lindsay M. Tedds, 2016. "Effects of the 2001 Extension of Paid Parental Leave Provisions on Birth Seasonality in Canada," Canadian Public Policy, University of Toronto Press, vol. 42(1), pages 65-82, March.
    13. Shirlee Lichtman, 2013. "The Value Of Postponing Pregnancy: California’S Paid Family Leave And The Timing Of Pregnancies," Working Papers 1310, Ben-Gurion University of the Negev, Department of Economics.
    14. Bergemann, Annette & Riphahn, Regina T., 2015. "Maternal Employment Effects of Paid Parental Leave," IZA Discussion Papers 9073, Institute for the Study of Labor (IZA).
    15. Susser, Philip & Ziebarth, Nicolas R., 2016. "Profiling the US Sick Leave Landscape," IZA Discussion Papers 9709, Institute for the Study of Labor (IZA).
    16. Farré, Lídia, 2016. "Parental Leave Policies and Gender Equality: A Survey of the Literature/Permisos de Paternidad e igualdad de género: Una revisión de la literatura," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 34, pages 45-60, Enero.
    17. Sara Oloomi, 2016. "Impact of Paid Family Leave of California on Delayed Childbearing and on Infant Health Outcomes," Departmental Working Papers 2016-08, Department of Economics, Louisiana State University.
    18. Hamish Low & Virginia Sánchez-Marcos, 2015. "Female labour market outcomes and the impact of maternity leave policies," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-22, December.
    19. Stearns, Jenna, 2015. "The effects of paid maternity leave: Evidence from Temporary Disability Insurance," Journal of Health Economics, Elsevier, vol. 43(C), pages 85-102.
    20. Avendano, Mauricio & Berkman, Lisa F. & Brugiavini, Agar & Pasini, Giacomo, 2015. "The long-run effect of maternity leave benefits on mental health: Evidence from European countries," Social Science & Medicine, Elsevier, vol. 132(C), pages 45-53.
    21. Tominey, Emma, 2016. "Female labour supply and household employment shocks: Maternity leave as an insurance mechanism," European Economic Review, Elsevier, vol. 87(C), pages 256-271.
    22. Reed, Joshua & Vandegrift, Donald, 2016. "The Effect of New Jersey’s Paid Parental Leave Policy on Employment," MPRA Paper 74794, University Library of Munich, Germany.
    23. Rossin-Slater, Maya, 2017. "Maternity and Family Leave Policy," IZA Discussion Papers 10500, Institute for the Study of Labor (IZA).
    24. Pichler, Stefan & Ziebarth, Nicolas R., 2016. "Labor Market Effects of US Sick Pay Mandates," IZA Discussion Papers 9867, Institute for the Study of Labor (IZA).
    25. Natalia Ramírez Bustamante & Ana Maria Tribin Uribe & Carmiña O. Vargas, 2015. "Maternity and Labor Markets: Impact of Legislation in Colombia," BORRADORES DE ECONOMIA 012610, BANCO DE LA REPÚBLICA.

    More about this item

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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