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HomeHealthHealth careThe Impact of Paid Family Leave on Job Retention – Healthcare Economist

The Impact of Paid Family Leave on Job Retention – Healthcare Economist

Paid household depart (PFL) present paid day off for staff who look after a new child (parental depart) or look after a sick or quickly disabled member of the family (caregiving depart). The US is without doubt one of the few nations that doesn’t provide PFL, however a variety of State have determined to undertake their very own coverage. California was the primary state to enact PFL and did so in 2004. As of now, 11 states (plus DC) have some for of PFL.

To higher perceive how PFL impacts job retention, a paper by Coile, Rossin-Slater and Su (2022) depend on a difference-in-difference technique to look at job retention traits earlier than and after the enactment of PFL. The authors deal with the introduction of PFL in 3 giant states: California, New York and New Jersey. They use knowledge from 1996-2019 Medical Expenditure Panel Survey (MEPS) to determine staff whose partner or little one experiences a well being shock (i.e., hospitalization or surgical procedure) throughout the survey. Based on this strategy, the authors discover that:

…getting access to PFL results in a 7.0 share level decline within the chance that working wives whose partner has a hospitalization or surgical procedure report “leaving a job to care for home or family” within the survey interviews following the well being shock. For males, there isn’t a such impact. This gender distinction within the impact of PFL entry is according to earlier literature that has discovered that girls are considerably extra more likely to have interaction in caregiving for his or her ailing spouses than males. Interestingly, the consequences of PFL entry on employment are concentrated amongst spousal caregivers with low ranges of schooling, suggesting that government-provided PFL could scale back pre-existing disparities in depart use and related outcomes. 

You can learn the full paper or the NBER Bulletin summary.



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