The Impacts of Paid Family Leave Benefits: Regression Kink Evidence from California Administrative Data
53 Pages Posted: 26 Mar 2018 Last revised: 11 Apr 2021
Date Written: March 2018
We use ten years of California administrative data with a regression kink 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 this group. In contrast, we document that a rise in the WBA leads to an increased likelihood of returning to the pre-leave firm (conditional on any employment) and of making a subsequent paid family leave claim.
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