Paid family leave

Paid family leave provides employees with paid time off for circumstances such as a recent birth or adoption, a parent or spouse with a serious medical condition, or a sick child. Some employers allow the use of paid time off for these purposes rather than designating family leave; some employers also offer maternity and paternity leave. Paid family leave may be provided by employers or via state-provided insurance (e.g., paid family leave insurance (PFLI) in California and New Jersey). Paid family leave may or may not be job-protected, and is distinct from the federal Family and Medical Leave Act (FMLA), which provides eligible employees with at least 12 work weeks of job-protected leave without pay. Some local governments cannot enact such measures due to state preemption legislation (Grassroots Change).

Expected Beneficial Outcomes (Rated)

  • Increased labor force participation

Other Potential Beneficial Outcomes

  • Increased use of parental leave

  • Improved health outcomes

  • Improved mental health

  • Increased preventive care

  • Increased breastfeeding rates

  • Improved birth outcomes

  • Reduced infant mortality

  • Improved well-being

  • Improved economic security

Evidence of Effectiveness

There is strong evidence that short-term paid family leave policies increase the likelihood that mothers remain in the labor force after child birth (, , ), particularly mothers without bachelor’s degrees (). Paid family leave can also increase use of parental leave to recover and care for children after birth (, , ), particularly for mothers with lower levels of education and mothers who are black or Hispanic (), and increase use of leave to care for sick children (Heymann 1999).

Paid leave appears to reduce the likelihood of low birthweight babies and pre-term birth (). Expansion of paid maternity and parental leave can increase the time parents spend with their infants following birth (, , ) and increase breastfeeding initiation and duration (, , , ). Employed mothers who have a longer delay returning to work after giving birth may experience fewer depressive symptoms than those who return to work earlier (, ). When receiving partial wage replacement benefits, parents with low incomes may return to work earlier than parents with higher incomes (Evans 2007).

Paid leave may improve child and family health and well-being, and contribute to greater family economic security (Schuster 2009). Such leave is associated with improved mental health in those caring for family members with special health care needs (Earle 2011). Access to paid leave can increase the likelihood of parents taking leave when their children have health problems (, Heymann 1999), especially in families with children with special health care needs (Chung 2007). Paid parental leave may also increase access to immunizations and other preventive care (), and may reduce child abuse ().

Early assessments of statewide paid leave policies in California and New Jersey suggest little impact on employers () and increased hiring and mobility among young women (), but also, potential for small decreases in employment and hiring (Urban-Isaacs 2017) and increased unemployment among young women (). Studies of leave in other countries suggest that leaves shorter than one year appear to increase employment but longer leave times may decrease wages and employment in the long- term ().

In other developed nations, access to paid, job-protected parental leave has been shown to reduce infant and child mortality (Heymann 2011, ), with longer durations resulting in greater reductions in death among infants and young children ().

Impact on Disparities

Likely to decrease disparities

Implementation Examples

Legislation guarantees paid leave for eligible employees in California, New Jersey, and Rhode Island and several cities across the country. New York’s guaranteed paid leave legislation is scheduled to take effect in January 2018. Washington state passed a paid leave law in 2007 but its implementation has been delayed indefinitely (NCSL-Leave).

California’s PFLI replaces 55% of wages for eligible workers for 6 weeks (NCSL-Leave). San Francisco has a citywide ordinance that requires employers to supplement the PFL benefit to provide 6 weeks fully paid leave to bond with a new child (LAW-Resources). State legislation pre-empts laws related to leave in 13 states (Grassroots Change).

The US is the only OECD country that does not provide paid parental leave ().

Implementation Resources

CA EDD-Family leave - State of California Employment Development Department (EDD). Paid family leave.

NJ LWD-Family leave - State of New Jersey Department of Labor and Workforce Development (LWD). Family leave insurance.

RI TDI-Paid leave - Rhode Island (RI) Temporary Disability Program. RI paid leave.

NCSL-Family leave resources - National Conference of State Legislatures (NCSL). Paid family leave resources.

LAW-Resources - Legal Aid at Work (LAW). Work & family.

Citations - Evidence

* Journal subscription may be required for access.

Ruhm 2000* - Ruhm CJ. Parental leave and child health. Journal of Health Economics. 2000;19(6):931–60.

Tanaka 2005* - Tanaka S. Parental leave and child health across OECD countries. Economic Journal. 2005;115(501):F7-F28.

Chung 2007 - Chung PJ, Garfield CF, Elliott MN, et al. Need for and use of family leave among parents of children with special health care needs. Pediatrics. 2007;119(5):e1047-55.

Earle 2011 - Earle A, Heymann J. Protecting the health of employees caring for family members with special health care needs. Social Science & Medicine. 2011;73(1):68-78.

Evans 2007 - Evans PM. Comparative perspectives on changes to Canada’s paid parental leave: Implications for class and gender. International Journal of Social Welfare. 2007;16(2):119–28.

Schuster 2009 - Schuster MA, Chung PJ, Elliott MN, et al. Perceived effects of leave from work and the role of paid leave among parents of children with special health care needs. American Journal of Public Health. 2009;99(4):698–705.

Borrell 2014* - Borrell C, Palencia L, Muntaner C, et al. Influence of macrosocial policies on women's health and gender inequalities in health. Epidemiologic Reviews. 2014;36(1):31-48.

Heymann 2013* - Heymann J, Earle A, McNeill K. The impact of labor policies on the health of young children in the context of economic globalization. Annual Review of Public Health. 2013;34:355–72.

Heymann 2011 - Heymann J, Raub A, Earle A. Creating and using new data sources to analyze the relationship between social policy and global health: The case of maternal leave. Public Health Reports. 2011;126(Suppl 3):127–34.

Heymann 1999 - Heymann SJ, Toomey S, MPhil, Furstenberg F. Working parents: What factors are involved in their ability to take time off from work when their children are sick? Archives of Pediatrics and Adolescent Medicine. 1999;153(8):870–4.

McGovern 2000* - McGovern P, Dowd B, Gjerdingen D, et al. The determinants of time off work after childbirth. Journal of Health Politics, Policy and Law. 2000;25(3):527–64.

Chatterji 2012* - Chatterji P, Markowitz S. Family leave after childbirth and the mental health of new mothers. Journal of Mental Health Policy and Economics. 2012;15(2):61–76.

Rossin Slater 2013* - Rossin-Slater M, Ruhm C, Waldfogel J. The effects of California’s paid family leave program on mothers' leave-taking and subsequent labor market outcomes. Journal of Policy Analysis and Management. 2013;32(2):224–45.

Urban-Isaacs 2017 - Isaacs J, Healy O, Peters HE. Paid family leave in the United States: Time for a new national policy. Washington, DC: The Urban Institute; 2017.

Klevens 2016* - Klevens J, Luo F, Xu L, Peterson C, Latzman NE. Paid family leave’s effect on hospital admissions for pediatric abusive head trauma. Injury Prevention. 2016;22(6):442-445.

Mirkovic 2016* - Mirkovic KR, Perrine CG, Scanlon KS. Paid maternity leave and breastfeeding outcomes. Birth. 2016;43(3):233-239.

Byker 2016* - Byker TS. Paid parental leave laws in the United States: Does short-duration leave affect women’s labor-force attachment? American Economic Review. 2016;106(5):242-246.

Das 2015* - Das T, Polachek SW. Unanticipated effects of California’s paid family leave program. Contemporary Economic Policy. 2015;33(4):619-635.

NBER-Rossin Slater 2017* - Rossin-Slater M. Maternity and family leave policy. National Bureau of Economic Research (NBER). 2017: Working Paper 23069.

Baum 2016* - Baum CL, Ruhm CJ. The effects of paid family leave in California on labor market outcomes. Journal of Policy Analysis and Management. 2016;35(2):333-356.

Huang 2015c* - Huang R, Yang M. Paid maternity leave and breastfeeding practice before and after California’s implementation of the nation’s first paid family leave program. Economics & Human Biology. 2015;16:45-59.

Stearns 2015* - Stearns J. The effects of paid maternity leave: Evidence from Temporary Disability Insurance. Journal of Health Economics. 2015;43:85-102.

Mark Curtis 2016* - Mark Curtis E, Hirsch BT, Schroeder MC. Evaluating workplace mandates with flows versus stocks: An application to California paid family leave. Southern Economic Journal. 2016;83(2):501-526.

Citations - Implementation Examples

* Journal subscription may be required for access.

NCSL-Leave - National Conference of State Legislatures (NCSL). State family medical leave and parental leave laws.

Grassroots Change - Grassroots Change. Connecting for better health.

LAW-Resources - Legal Aid at Work (LAW). Work & family.

Adema 2016* - Adema W, Clarke C, Frey V. Paid parental leave and other supports for parents with young children: The United States in international comparison. International Social Security Review. 2016;69(2):29-51.

Date Last Updated

Aug 30, 2017