Working Paper: CEPR ID: DP14217
Authors: Martha Bailey; Tanya Byker; Elena Patel; Shanthi Ramnath
Abstract: This paper uses IRS tax data to evaluate the short- and long-term effects of California’s 2004 Paid Family Leave Act (PFLA) on women’s careers. Our research design exploits the increased availability of paid leave for women giving birth in the third quarter of 2004 (just after PFLA was implemented). These mothers were 18 percentage points more likely to use paid leave but otherwise identical to multiple comparison groups in pre-birth demographic, marital, and work characteristics. We find little evidence that PFLA increased women’s employment, wage earnings, or attachment to employers. For new mothers, taking up PFLA reduced employment by 7 percent and lowered annual wages by 8 percent six to ten years after giving birth. Overall, PFLA tended to reduce the number of children born and, by decreasing mothers’ time at work, increase time spent with children.
Keywords: Paid Family Leave; Women's Employment; Labor Economics
JEL Codes: J08; J16; J71
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Paid Family Leave Act implementation (J22) | women's employment status (J21) |
| Paid Family Leave Act implementation (J22) | women's wage earnings (J31) |
| Paid Family Leave Act implementation (J22) | women's attachment to employers (J29) |
| Paid Family Leave Act implementation (J22) | employment of new mothers (J22) |
| Paid Family Leave Act implementation (J22) | number of children born (J13) |
| Paid Family Leave Act implementation (J22) | time spent with children (J22) |