The Effects of New York’s Paid Family Leave on Poverty Following Childbirth

• In Event: Broadening the Evidence on State Paid Leave Access and Outcomes

Abstract

Economic insecurity often worsens after childbirth, with over 22% of 1-year-olds living in poverty in 2016—well above the national average (U.S. Census Bureau, 2017). Lost maternal earnings and the rising costs of infant care contribute to this strain, which is intensified by limited access to paid leave (Brandrup & Mance, 2011; Winston, 2014). State-provided paid family leave (PFL) has the potential to alleviate these pressures by supplementing income and supporting parental employment. This study examines the poverty reduction effects of New York’s Paid Family Leave (NY-PFL), implemented in 2018.

Using data from the 2016–2022 American Community Survey, this study employs a difference-in-differences design to compare poverty outcomes among families with 1-year-olds in New York and other states, before and after NY-PFL implementation (N = 116,536). Poverty status and income-to-needs ratios are measured using the Supplemental Poverty Measure (SPM), which incorporates in-kind transfers and tax-related income, and adjusts thresholds based on geographic cost of living. To investigate potential mechanisms, I also examine changes in maternal employment and earnings. Subgroup analyses by birth parity, marital status, educational attainment, and race/ethnicity are conducted to assess heterogeneous effects.

The results indicate that NY-PFL is associated with a statistically significant decline in poverty of 0.8 percentage points (a 5.1% reduction) and an increase in the income-to-needs ratio by 0.78 (2.8%). These gains coincide with a 1.5 percentage point (2.3%) increase in maternal employment and a $2,905 (6.6%) rise in maternal earnings. Notably, the poverty-reducing effects were concentrated among mothers with higher-order births, White mothers, and those with a high school degree or less.

These findings highlight the vital role of paid family leave in reducing economic insecurity after childbirth and supporting mothers’ labor force participation. By stabilizing income during a vulnerable period, NY-PFL has helped improve families’ financial well-being and may contribute to a more supportive environment for young children’s development

Author

• Jiwan Lee, Brown University
  Presenting Author