California's Paid Family Leave Law and the Employment of 45-64 Year Old Adults

51 Pages Posted: 2 Jun 2021

See all articles by Soohyun Kim

Soohyun Kim

Columbia University

Ann P. Bartel

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

Christopher J. Ruhm

University of Virginia - Frank Batten School of Leadership and Public Policy; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Jane Waldfogel

Columbia University - School of Social Work

Abstract

Paid family leave allows workers to take time off from work to care for a family member with a serious health condition, with reduced financial risk and increased job continuity. In 2004, California was the first state in the nation to implement a paid family leave program allowing workers to take up to eight weeks off work with partial pay to care for their own or a family member's serious health condition. While the effects of California's law on the labor supply of parents of newborns have been extensively studied, the role of paid family leave in the labor supply of workers who may need to provide care for a spouse has not been studied widely. We examine the effects of California's law on the employment of workers who are aged 45-64 and have a disabled spouse, using the 2001-2008 American Community Survey. Our preferred estimates suggest the paid leave program increased the employment of 45-64 year old women with a disabled spouse in California by around 0.9 percentage points (or 1.4% on a pre-law base rate of 65.9%) in the post-law period compared to their counterparts in other states, with a 2.9 percentage point rise in private sector employment. The employment of men with a disabled spouse in California also increased, but by a smaller amount: 0.7 percentage points (or 0.8% on a pre-law base 86.8%) (with a non-significant 0.4 percentage point decrease in private sector employment).

JEL Classification: J01, J20, J22

Suggested Citation

Kim, Soohyun and Bartel, Ann P. and Ruhm, Christopher J. and Waldfogel, Jane, California's Paid Family Leave Law and the Employment of 45-64 Year Old Adults. IZA Discussion Paper No. 14380, Available at SSRN: https://ssrn.com/abstract=3855944

Soohyun Kim (Contact Author)

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

Ann P. Bartel

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Christopher J. Ruhm

University of Virginia - Frank Batten School of Leadership and Public Policy ( email )

235 McCormick Rd.
P.O. Box 400893
Charlottesville, VA 22904-4893
United States
434-924-7581 (Phone)

HOME PAGE: http://batten.virginia.edu/cruhm.html

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
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IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Jane Waldfogel

Columbia University - School of Social Work ( email )

622 W. 113th Street
New York, NY 10025
United States

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