Working Paper: NBER ID: w26617
Authors: Claudia Goldin; Sari Pekkala Kerr; Claudia Olivetti
Abstract: Why do competitive firms in the US provide paid parental leave (PPL)? Which firms do and to what extent? We use several firm- and individual-level data sets to answer these questions. These include the BLS-Employee Benefit Survey (EBS) for 2010 to 2018 and an extensive firm-level data collection that we compiled. Our work is undergirded by a two-period model with competitive firms whose workers vary by their optimal firm-specific training and the probability that each will remain on the job after PPL is taken. We find that firm-provided PPL has greatly increased in the last two decades and generally covers new fathers. The levels of provision differ greatly by the industry, firm size, and the degree of firm-specific training. But even the top-of-the-line firm in the US provides fewer fully paid parental weeks than does the median OECD nation.
Keywords: Paid Parental Leave; Firms; Labor Markets; Employee Benefits
JEL Codes: J13; J22; J32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Competitive nature of firms (L21) | Increase in firm-provided PPL (J39) |
| Firm-specific training (M53) | Increase in firm-provided PPL (J39) |
| Higher levels of human capital investment (J24) | More likely to offer PPL (J79) |
| Higher proportion of female workers (J21) | More generous leave policies (J22) |
| State-level paid family leave policies (J89) | Generosity of firm-level PPL benefits (J32) |