Paid household depart (PFL) present paid time without work for employees who look after a new child (parental depart) or look after a sick or briefly disabled member of the family (caregiving depart). The US is among 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 developments earlier than and after the enactment of PFL. The authors give attention to the introduction of PFL in 3 massive states: California, New York and New Jersey. They use information from 1996-2019 Medical Expenditure Panel Survey (MEPS) to establish employees whose partner or baby experiences a well being shock (i.e., hospitalization or surgical procedure) throughout the survey. Primarily based on this strategy, the authors discover that:
…gaining access to PFL results in a 7.0 proportion level decline within the chance that working wives whose partner has a hospitalization or surgical procedure report “leaving a job to look after dwelling or household” within the survey interviews following the well being shock. For males, there isn’t any such impact. This gender distinction within the impact of PFL entry is in keeping with earlier literature that has discovered that girls are considerably extra more likely to interact in caregiving for his or her in poor health spouses than males. Curiously, the results of PFL entry on employment are concentrated amongst spousal caregivers with low ranges of schooling, suggesting that government-provided PFL might cut back pre-existing disparities in depart use and related outcomes.