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

Author

Listed:
  • Charles L. Baum, II
  • 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.

Suggested Citation

  • Charles L. Baum, II & Christopher J. Ruhm, 2013. "The Effects of Paid Family Leave in California on Labor Market Outcomes," Working Papers 201401, Middle Tennessee State University, Department of Economics and Finance.
  • Handle: RePEc:mts:wpaper:201401
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    File URL: http://capone.mtsu.edu/berc/working/CAPFL%201209.pdf
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    References listed on IDEAS

    as
    1. Baum, Charles II, 2003. "The effect of state maternity leave legislation and the 1993 Family and Medical Leave Act on employment and wages," Labour Economics, Elsevier, vol. 10(5), pages 573-596, October.
    2. Ruhm, Christopher J., 2000. "Parental leave and child health," Journal of Health Economics, Elsevier, vol. 19(6), pages 931-960, November.
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    5. 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.
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    Citations

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    Cited by:

    1. Khanam, Rasheda & Nghiem, Son & Connelly, Luke, 2016. "The effects of parental leave on child health and postnatal care: Evidence from Australia," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 17-29.
    2. repec:iae:iaewps:wp2016n9 is not listed on IDEAS
    3. Broadway, Barbara & Kalb, Guyonne & McVicar, Duncan & Martin, Bill, 2016. "The Impact of Paid Parental Leave on Labour Supply and Employment Outcomes," IZA Discussion Papers 9801, Institute for the Study of Labor (IZA).
    4. Maya Rossin-Slater, 2017. "Maternity and Family Leave Policy," NBER Working Papers 23069, National Bureau of Economic Research, Inc.
    5. Bergemann, Annette & Riphahn, Regina T., 2015. "Maternal Employment Effects of Paid Parental Leave," IZA Discussion Papers 9073, Institute for the Study of Labor (IZA).
    6. 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.
    7. repec:eee:wdevel:v:96:y:2017:i:c:p:102-118 is not listed on IDEAS
    8. 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.
    9. Rossin-Slater, Maya, 2017. "Maternity and Family Leave Policy," IZA Discussion Papers 10500, Institute for the Study of Labor (IZA).
    10. E. Mark Curtis & Barry T. Hirsch & Mary C. Schroede, 2016. "Evaluating Workplace Mandates with Flows Versus Stocks: An Application to California Paid Family Leave," Southern Economic Journal, Southern Economic Association, vol. 83(2), pages 501-526, October.
    11. Kevin Callison & Michael F. Pesko, 2016. "The Effect of Mandatory Paid Sick Leave Laws on Labor Market Outcomes, Health Care Utilization, and Health Behaviors," Upjohn Working Papers and Journal Articles 16-265, W.E. Upjohn Institute for Employment Research.

    More about this item

    Keywords

    Paid Leave; Family Leave; Employment; Wages; Leave-Taking; Return-to-Work Decisions;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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