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The Effect of Paid Family Leave on Sleep Duration and Labor Market Outcomes in the U.S.

Friday, November 14, 3:30 to 5:00pm, Property: Hyatt Regency Seattle, Floor: 7th Floor, Room: 706 - Pilchuck

Abstract

This study examines the causal impact of state-level Paid Family Leave (PFL)policies on sleep duration and labor market outcomes in the United States. Leveragingthe staggered implementation of PFL across states between 1998 and 2020, Iemploy a staggered difference-in-differences design using the Current PopulationSurvey (CPS) and the American Time Use Survey (ATUS). The CPS is used toestimate the impact of PFL on employment, labor force participation, and hoursworked per week while ATUS data assess the effect on sleep duration. Results showthat PFL increases employment and working hours, with stronger effects amongmarried men. For women, the impact varies by marital status: single and divorcedwomen increase their labor force participation and working hours, While marriedwomen show no significant change, this may suggest that women were able to utilizethe available leave program and subsequently return to their jobs. However, marriedmen respond by increasing their own labor supply, suggesting a compensatoryhousehold labor adjustment. In addition, sleep duration improves slightly, particularlyfor women and single individuals. These findings suggest that PFL policiessupport labor market attachment while offering benefits to personal well-being andenabling families to adapt caregiving responsibilities without withdrawing from theworkforce.

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