The Impact of Paid Family Leave on Families with Health Shocks

Abstract

We study the impact of paid family leave (PFL) policies on individuals’ labor market and mental health-related responses to their spouses’ and children’s health shocks using data from the Medical Expenditure Panel Survey and event-study models. We find that PFL access improves job continuity among wives of individuals who are hospitalized or have surgery. Additionally, while PFL access does not affect the wives’ self-reported mental health, it reduces their use of mental health-related medication. We find no effects of PFL on parents of children who experience health shocks, suggesting that this policy is less fitting for this group of caregivers.