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

Baum, Charles L.; Ruhm, Christopher J.

doi:10.3386/w19741

Cited by 31 publications

(30 citation statements)

References 33 publications

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“…This latter study analyzes individual micro data on women workers and concentrates solely on changes in maternity leave usage relative to other leaves . Baum and Ruhm (), using micro data from the 1997 National Longitudinal Survey, also echo this finding that the CPFL raised leave‐taking by about 3 weeks for the average mother.…”

Section: Introductionmentioning

confidence: 79%

Unanticipated Effects of California's Paid Family Leave Program

Das

Polachek

2015

Contemporary Economic Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S ABSTRACT Unanticipated Effects of California's Paid Family Leave ProgramWe examine the effect of California Paid Family Leave (CPFL) on young women's (less than 42 years of age) labor force participation and unemployment. CPFL enables workers to take at most six weeks of paid leave over a 12 month period in order to bond with new born or adopted children, or to care for sick family members or ailing parents. The policy benefits women, especially young women, since they are more prone to take such a leave. However, the effect of the policy on labor market outcomes is less clear. We apply difference-indifference techniques to identify the effects of the CPFL legislation on young women's labor force participation and unemployment. We find that the labor force participation rate, the unemployment rate, and the duration of unemployment among young women rose in California compared to states that did not adopt paid family leave. The latter two findings regarding higher young women's unemployment and unemployment duration are unanticipated effects of the CPFL program. We utilize a unique placebo test to validate the robustness of these results.JEL Classification: H43, J13, J18, J48

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Section: Introductionmentioning

confidence: 79%

Unanticipated Effects of California's Paid Family Leave Program

Das

Polachek

2015

Contemporary Economic Policy

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“…For instance, a recent study on the effects of PFL in California found that maternity leave periods increased by a mean of 3 weeks post‐PFL implementation, and increases were most pronounced for less advantaged mothers, including those with lower levels of educational attainment, minority mothers, and single mothers (Rossin‐Slater et al, ). In a related study, PFL in California was also associated with an 18% increase in the likelihood of new mothers working in the year following a birth, with some indications of modest wage increases over the same period (Baum & Ruhm, ). Despite evidence that suggests California's PFL program may have produced positive effects on leave‐taking, job continuity, and wages, concerns remain that PFL programs may not go far enough to protect low‐income single‐mother families—who face heightened financial insecurity around the time of birth (Stanczyk, )—from postbirth economic deprivation.…”

Section: Background and Literature Reviewmentioning

confidence: 95%

“…PFL programs are associated with longer leave periods from work by new mothers, greater job continuity, and some evidence of wage improvements over time (Baum & Ruhm, ; Rossin‐Slater et al, ). For instance, a recent study on the effects of PFL in California found that maternity leave periods increased by a mean of 3 weeks post‐PFL implementation, and increases were most pronounced for less advantaged mothers, including those with lower levels of educational attainment, minority mothers, and single mothers (Rossin‐Slater et al, ).…”

Section: Background and Literature Reviewmentioning

confidence: 99%

“…In the United States, access to state‐sponsored paid leave to support time off from work around a birth (hereafter, PL ) has been associated with improvements in child health (Stearns, ), increases in mothers' job continuity, and postbirth labor force attachment (Baum & Ruhm, ; Rossin‐Slater, Ruhm, & Waldfogel, ), and reductions in means‐tested assistance around a birth (Houser & Vartanian, ). Although the role of PL in supporting all families is important, there is growing interest in understanding its effectiveness for attenuating economic deprivation among the most vulnerable families—single, low‐income women with infants (hereafter, low‐income single mothers ; Stanczyk, ; Ybarra, ).…”

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confidence: 99%

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Paid Leave, Welfare, and Material Hardship After a Birth

Ybarra

Stanczyk

2019

Family Relations

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Objective To examine the relationships between state‐sponsored paid leave, Temporary Assistance for Needy Families (TANF) generosity and participation, and material hardship among low‐income single women following a birth. Background Past research has examined the relationship between public assistance and paid leave after a birth, finding reductions in program enrollment. This research has not accounted for variation in program benefits across states and has largely overlooked implications for family well‐being. Method We use a sample (N = 1,174) of low‐income single women who gave birth between 1997 and 2001 from the Survey of Income and Public Program Participation and include measures of TANF generosity across states and over time that were constructed from the Welfare Rules database. A series of multivariate probit regression models are used to estimate the relationship between TANF generosity, paid leave availability, welfare participation, and material hardship while controlling for relevant individual and state‐level characteristics. Results Paid leave was associated with less TANF participation, but these reduction are related to the program's generosity. Paid leave, states' welfare work exemptions for mothers of infants, and TANF earnings eligibility limits were associated with a lower likelihood of experiencing some forms of material hardship. Conclusion Some forms of paid leave and TANF program generosity are related to reductions in TANF participation and material hardship after a birth for low‐income single women. Implications This study demonstrates that researchers should account for variation in TANF programs when considering changes in program enrollment associated with paid leave. Results suggest paid leave may help alleviate some forms of economic stress after a birth, which has implications for maternal, infant, and family well‐being.

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“…all leave types combined). Baum and Ruhm () study the impact of the same policy change using different data (the 1997 cohort of the National Longitudinal Survey of Youth) which provide more detail on the leave taking than the snapshot of leave taking observed through the March Current Population Survey data from 1999 to 2010 used by Rossin‐Slater et al . Baum and Ruhm's approach involves a multivariate difference in difference analysis using parents from control states without a paid family leave scheme.…”

Section: Introducing Paid Parental Leavementioning

confidence: 99%

Paid Parental Leave and Female Labour Supply: A Review

Kalb

2017

Economic Record

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This review is based on the international and Australian literature on paid parental leave. It does not aim to be exhaustive but focuses on the impact paid parental leave has on the labour force participation of mothers in developed countries. Four aspects of paid parental leave are explored, including the impacts of: introducing paid parental leave; changing the duration of existing paid parental leave; changing the generosity of existing paid parental leave payments; and paid paternity leave. It interprets the implications in the context of Australia, and includes descriptive information on the recent and current situation in Australia.

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

Cited by 31 publications

References 33 publications

Unanticipated Effects of California's Paid Family Leave Program

Unanticipated Effects of California's Paid Family Leave Program

Paid Leave, Welfare, and Material Hardship After a Birth

Paid Parental Leave and Female Labour Supply: A Review

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