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The Impacts of Paid Family Leave Benefits: Regression Kink Evidence from California Administrative Data

Author

Listed:
  • Bana, Sarah

    (University of California, Santa Barbara)

  • Bedard, Kelly

    (University of California, Santa Barbara)

  • Rossin-Slater, Maya

    (Stanford University)

Abstract

Although the United States provides unpaid maternity and family leave to qualifying workers, it is the only OECD country without a national paid leave policy, making wage replacement a pivotal issue under debate. We use ten years of linked administrative data from California together with a regression kink (RK) design to estimate the causal impacts of benefits in the first state-level paid family leave program for women with earnings near the maximum benefit threshold. We find no evidence that a higher weekly benefit amount (WBA) increases leave duration or leads to adverse future labor market outcomes for mothers in this group. In contrast, we document consistent evidence that an increase in the WBA leads to a small increase in the share of quarters worked one to two years after the leave and a sizeable increase in the likelihood of making a future paid family leave claim across a variety of specifications.

Suggested Citation

  • Bana, Sarah & Bedard, Kelly & Rossin-Slater, Maya, 2018. "The Impacts of Paid Family Leave Benefits: Regression Kink Evidence from California Administrative Data," IZA Discussion Papers 11381, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11381
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    Cited by:

    1. Bana, Sarah & Bedard, Kelly & Rossin-Slater, Maya & Stearns, Jenna, 2018. "Unequal Use of Social Insurance Benefits: The Role of Employers," IZA Discussion Papers 11882, Institute of Labor Economics (IZA).
    2. Martha J. Bailey & Tanya S. Byker & Elena Patel & Shanthi Ramnath, 2019. "The Long-Term Effects of California’s 2004 Paid Family Leave Act on Women’s Careers: Evidence from U.S. Tax Data," NBER Working Papers 26416, National Bureau of Economic Research, Inc.
    3. Rodgers, Luke P., 2020. "The impact of paid family leave on household savings," Labour Economics, Elsevier, vol. 67(C).
    4. ASAI Yukiko & Dmitri K. KOUSTAS, 2021. "Temporary Work Contracts and Female Labor Market Outcomes," Discussion papers 21071, Research Institute of Economy, Trade and Industry (RIETI).
    5. Marta Lachowska & Alexandre Mas & Raffaele D. Saggio & Stephen A. Woodbury, 2020. "Do Firm Effects Drift? Evidence from Washington Administrative Data," NBER Working Papers 26653, National Bureau of Economic Research, Inc.
    6. Ginja, Rita & Karimi, Arizo & Xiao, Pengpeng, 2020. "Employer Responses to Family Leave Programs," IZA Discussion Papers 13833, Institute of Labor Economics (IZA).
    7. Ali, Umair & Herbst, Chris M. & Makridis, Christos A., 2021. "The impact of COVID-19 on the U.S. child care market: Evidence from stay-at-home orders," Economics of Education Review, Elsevier, vol. 82(C).
    8. Saad-Lessler, Joelle, 2020. "How does paid family leave affect unpaid care providers?," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    9. Rita Ginja & Jenny Jans & Arizo Karimi, 2020. "Parental Leave Benefits, Household Labor Supply, and Children’s Long-Run Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 38(1), pages 261-320.
    10. Samantha Trajkovski, 2019. "California Paid Family Leave and Parental Time Use," Center for Policy Research Working Papers 217, Center for Policy Research, Maxwell School, Syracuse University.
    11. Bartel, Ann P. & Rossin-Slater, Maya & Ruhm, Christopher J. & Slopen, Meredith & Waldfogel, Jane, 2021. "The Impact of Paid Family Leave on Employers: Evidence from New York," IZA Discussion Papers 14262, Institute of Labor Economics (IZA).
    12. Bullinger, Lindsey Rose, 2019. "The Effect of Paid Family Leave on Infant and Parental Health in the United States," Journal of Health Economics, Elsevier, vol. 66(C), pages 101-116.

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    More about this item

    Keywords

    paid family leave; regression kink design; leave duration; maternal labor supply; temporary disability insurance;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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