The e¤ect of parental leave on female employment:evidence from state policies

This paper analyzes the e¤ect of federal and state maternity leave policies on female employment. We analyze if the enactment of the federal Family Medical Leave Act (FMLA) di¤erentially a¤ected states that previously implemented maternity leave laws at the state level than those states which did not. Additionally, we study whether FMLA caused an increase in the female employment and labor force participation in those states that expanded its bene…ts and relaxed the eligibility criteria. Finally, we analyze the Paid Family Leave program in California, comparing how the change in female employment and labor force participation di¤ers from those states which have FMLA alone and those which have complemented the bene…ts of FMLA. Using March CPS data available from the Integrated Public Use Micro data Series (IPUMS), our results suggest in general, the positive and signi…cant e¤ect of FMLA on female employment and also that the change in female employment is positive and signi…cant for some states when they complement the bene…ts and eligibility criteria of FMLA