The Long-Term Effects of California’s 2004 Paid Family Leave Act on Women’s Careers: Evidence from U.S. Tax Data

Martha Bailey, Tanya Byker, Elena Patel and Shanthi Ramnath

No 14217, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

JEL-codes: J08 J16 J71 (search for similar items in EconPapers)
Date: 2019-12
New Economics Papers: this item is included in nep-dem
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Citations: View citations in EconPapers (9)

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