Association for Public Policy Analysis & Management

BACKGROUND: Paid parental leave is commonplace in other high-income countries, and substantial research has already documented the beneficial effects of leave-taking. Many parents in the U.S. currently take leave with partial or no pay, aided by minimal job protection laws and a patchwork of policies that provide partial pay for some parents. Yet parental leave-taking in California remains less common among lower socioeconomic status parents, in part due to the difficult in affording leave when only partially paid.

San Francisco’s recently adopted Paid Parental Leave Ordinance (PPLO) is the most far-reaching law in the country, ensuring six weeks of fully paid leave for new parents employed in the City's private sector. The Ordinance, which took effect for employers with more than 50 employees in early 2017, builds on California’s Paid Family Leave (PFL) program, which replaces income up to 55 percent of wages, by requiring covered employers to replace the remaining 45 percent.

METHODS: Using difference-in-differences methodology, we examine the impact of the ordinance on uptake and duration of leave, particularly focusing on lower-income workers who are most likely to benefit from full wage replacement while on leave. Our analysis utilizes monthly time series data from the California Employment Development Department (EDD) on PFL bonding claims from January 2010 to June 2018 by males and females, stratified by average weekly benefit amount (AWBA). We compare changes in claims after the PPLO by residents of San Francisco relative to those in the surrounding Bay Area counties, as well as other urban regions of California. Changes in state PFL bonding claims should reflect leave-taking changes in response to the PPLO because San Francisco employees who want to receive pay from their employer under the PPLO must make a PFL claim through EDD.

PRELIMINARY RESULTS: Preliminary analyses indicate that the PPLO significantly increased uptake of leave among males in the lower income brackets, i.e., those receiving $0-300 AWBA (b=4.25, std. err. = 1.350) and $301-600 AWBA (b=10.47, std. err.=3.26). It also increased uptake of leave among females in the lowest income bracket (b=14.69, std. err.=4.23). No changes were detected in uptake of leave among higher-income workers or in average claim duration. We will present final results from these analyses and discuss implications for policy.