Do Family Leave Policies Work

Policies that subsidize or mandate family leave aim to reduce the gender pay gap, shrink the "child penalty," and otherwise promote success for women in the labor market.

A recent study, however, finds

no evidence that [California's 2004 Paid Family Leave Act (CPFL)] … increased employment, boosted earnings, or encouraged childbearing, suggesting that CPFL had little effect on the gender pay gap or child penalty. For first-time mothers, … CPFL reduced employment and earnings roughly a decade after they gave birth.

The study authors conclude,

Given the growing research on the health and well-being benefits of paid family leave policies, US policymakers favoring these benefits may want to consider alternative implementation strategies to mitigate the potentially adverse effects on women's employment and careers.

One alternative is to leave decisions about career and child-rearing to women and their families, with no government thumb on the scale!

This article appeared on Substack on August 23, 2024.

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