Postdoc20-02: Economic Impact of State Paid Family Leave Policies on Caregivers with Older Disabled Adults

Abstract

This study examines the impact of the state paid family leave mandates on working-age individuals residing with older and/or disabled adults. When facing the dual demands of employment and taking care of family members with serious illness or disability, potential caregivers in states with paid leave policies have access to benefits. These benefits can help improve labor attachment after the impacted caregivers are able to take time off to provide care. Using the difference-in-difference approach to analyze American Time Use and CPS data, this study found that the paid family leave laws were associated with a higher probability of providing family caregiving, higher labor attachment, and less probability of working part-time voluntarily. Although the study found some evidence of a reduction in work hours in some cases, there was little evidence of an adverse impact on wages and earnings. The paid family leaves also reduced reliance on social welfare benefits, which suggests better economic security and the potential to improve retirement security among caregivers.