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HomeHealth LawThe Influence of Paid Household Depart on Job Retention – Healthcare Economist

The Influence of Paid Household Depart on Job Retention – Healthcare Economist

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Paid household depart (PFL) present paid day 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 international locations that doesn’t supply 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 raised 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 traits earlier than and after the enactment of PFL. The authors deal with 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 determine employees whose partner or little one experiences a well being shock (i.e., hospitalization or surgical procedure) through the survey. Based mostly on this strategy, the authors discover that:

…accessing PFL results in a 7.0 share level decline within the likelihood 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 a such impact. This gender distinction within the impact of PFL entry is per earlier literature that has discovered that ladies are considerably extra prone to interact in caregiving for his or her sick spouses than males. Curiously, the results of PFL entry on employment are concentrated amongst spousal caregivers with low ranges of training, suggesting that government-provided PFL could cut back pre-existing disparities in depart use and related outcomes. 

You’ll be able to learn the full paper or the NBER Bulletin abstract.



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