The Effects of Paid Family Leave on Job Retention – Health Economist

Paid household go away (PFL) is paid time without work for workers caring for a new child child (parental go away) or caring for a member of the family who’s sick or briefly disabled (carer go away). The US is without doubt one of the few nations that does not supply PFL, however a variety of states have determined to pursue their very own insurance policies. California was the primary state to undertake PFL, again in 2004. At the moment, 11 states (plus DC) have some for PFL.

To higher perceive how PFL impacts job retention, an article by Coil, Rossin-Slater and Su (2022) Depend on a difference-in-difference technique to look at developments in job retention earlier than and after the passage of PFL. The authors give attention to the adoption of PFL in 3 main states: California, New York and New Jersey. They use information from the 1996-2019 Medical Expenditure Panel Survey (MEPS) to determine staff whose partner or youngster experiences a well being shock (ie, hospitalization or surgical procedure) through the survey. Based mostly on this method, the authors discover the next:

…entry to PFL ends in a 7.0 share level lower within the chance that working wives whose spouses have been hospitalized or have had surgical procedure will report within the post-health shock survey interviews that they “left their job to deal with family or family chores.” household to deal with.” This impact doesn’t exist in males. This gender distinction within the impact of PFL entry is in line with earlier literature which has discovered that ladies are considerably extra doubtless than males to care for his or her sick spouses. Curiously, the employment impression of PFL entry is targeting low-educated partner carers, suggesting that government-provided PFL could cut back pre-existing disparities in go away take-up and related outcomes.

You may learn them full paper or the NBER Bulletin Abstract.