Association for Public Policy Analysis & Management

A growing body of literature analyzes the effects of California’s 2004 Paid Family Leave (PFL) Program on the labor supply of new mothers and fathers. The program also allows time off for workers to care for an ill family member; yet, the effects of PFL on caregivers is relatively unknown. While the labor supply of new mothers and fathers may be temporarily reduced around the time of a birth or adoption, the leave needs of caregivers may be ongoing. This paper explores how California’s PFL impacts the labor supply of mothers and fathers of children with disabilities and illnesses. I use panel data from the Survey of Income and Program Participation (SIPP) and difference-in-difference-in-differences (DDD) to estimate the effect of children’s special health care needs on their parents’ labor supply (in static and dynamic models of labor force participation) and whether access to publically-funded paid leave affects the labor supply of these parents. Initial results indicate a negative relationship between a child’s needs and the labor force participation of his/her mother and father. For mothers of children in fair or poor health, there appears to be a positive impact on labor force participation of living in California in the period immediately after PFL.