The Impacts of Paid Family Leave Benefits: Regression Kink Evidence from California Administrative Data

51 Pages Posted: 2 Apr 2018

See all articles by Sarah Bana

Sarah Bana

Stanford University

Kelly Bedard

University of California - Department of Economics

Maya Rossin-Slater

Columbia University

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Abstract

Although the United States provides unpaid maternity and family leave to qualifying workers, it is the only OECD country without a national paid leave policy, making wage replacement a pivotal issue under debate. We use ten years of linked administrative data from California together with a regression kink (RK) design to estimate the causal impacts of benefits in the first state-level paid family leave program for women with earnings near the maximum benefit threshold. We find no evidence that a higher weekly benefit amount (WBA) increases leave duration or leads to adverse future labor market outcomes for mothers in this group. In contrast, we document consistent evidence that an increase in the WBA leads to a small increase in the share of quarters worked one to two years after the leave and a sizeable increase in the likelihood of making a future paid family leave claim across a variety of specifications.

Keywords: paid family leave, regression kink design, leave duration, maternal labor supply, temporary disability insurance

JEL Classification: I18, J13, J16, J18

Suggested Citation

Bana, Sarah and Bedard, Kelly and Rossin-Slater, Maya, The Impacts of Paid Family Leave Benefits: Regression Kink Evidence from California Administrative Data. IZA Discussion Paper No. 11381, Available at SSRN: https://ssrn.com/abstract=3153345

Sarah Bana (Contact Author)

Stanford University ( email )

Stanford, CA 94305
United States

Kelly Bedard

University of California - Department of Economics ( email )

2127 North Hall
Santa Barbara, CA 93106
United States
805-893-5571 (Phone)
805-893-8830 (Fax)

Maya Rossin-Slater

Columbia University ( email )

1022 International Affairs Bldg
420 West 118th Street
New York, NY 10027
United States

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