Impacts of Family-Friendly Workplace Policies
Saturday, Jan. 5, 2019 2:30 PM - 4:30 PM
- Chair: Claudia Olivetti, Boston College
Family Leave Law and the Demand for Female Labor: Evidence from a Trade Shock
AbstractThis paper estimates a labor demand effect of mandated, job-protected family leave on female workers. We use confidential microdata of matched employers and employees for the universe of U.S. non-farm, private sector firms and separately identify firms required to provide leave under the 1993 Family and Medical Leave Act (FMLA) and firms that are exempt (non-FMLA). We study the difference in the demand for female workers between FMLA and non-FMLA firms, following a trade-induced, exogenous labor demand shock. We find that the demand for female relative to male workers is lower at FMLA firms compared to non-FMLA firms in response to the trade shock. This difference is most pronounced for less than college-educated female workers and women in their childbearing ages. The difference is mitigated at firms with female managers.
Maternity Leave Policies: Evidence from Rhode Island
AbstractThis paper measures the impact of government-sponsored paid maternity leave on outcomes of mothers and their children. We use comprehensive administrative data from Rhode Island’s Temporary Disability Insurance (TDI) program, which replaces sixty percent of earnings for qualified women who take leave due to pregnancy or postpartum recovery. We conduct three analyses. We use program qualification rules and a regression discontinuity (RD) approach to measure impacts of TDI among low-earning mothers. We do not find significant impacts on mothers’ labor supply or economic self-sufficiency in the quarters surrounding or the years after birth. Next, we examine if there are impacts of coupling TDI with job protection provided by the Family Medical Leave Act (FMLA). Using an additional RD design, we do not find significant impacts of job protection eligibility for TDI claimants. Finally, we study impacts of TDI for women near and away from the qualification threshold using machine learning (ML) to select controls from a large number of characteristics from administrative records. We find positive and significant impacts of TDI, but interpret these estimates cautiously since a comparison of ML and RD estimates suggests positive selection bias. We do not find significant impacts on children’s outcomes in any analysis.
The Long-Term Effects of California’s 2004 Paid Family Leave Act on Women’s Labor-Market Outcomes: Evidence from United States Tax Data
AbstractPaid leave policies have been championed as a means to level the playing field for working women and narrow the gender gap in wages. Using large-scale Internal Revenue Services (IRS) tax data, this paper provides novel evidence on the short- and long-term effects of California’s 2004 Paid Family Leave Act on women’s labor-force outcomes over the policy’s first decade. Our research design compares the outcomes of California women who first gave birth just after the policy became effective on July 1, 2004, to women who gave birth three months before it was implemented (whose claims to paid leave would not have been protected under the Family and Medical Leave Act). Our findings suggest that the employment effects of California’s 2004 Paid Leave Act for new mothers were no greater than 0.7 percent, and its wage effects were no greater than 0.6 percent. These aggregate effects mask sharp decreases in employment and wages for some subgroups of new mothers.
- J2 - Demand and Supply of Labor
- K2 - Regulation and Business Law