The Impact of Paid Family Leave on Employers: Evidence from New York
We designed and fielded a survey of New York and Pennsylvania firms to study the impacts of New York's 2018 Paid Family Leave policy on employer outcomes. We match each NY firm to a comparable PA firm and use difference-in-difference models to analyze within-match-pair changes in outcomes. We find that PFL leads to an improvement in employers' rating of their ease of handling long employee absences, concentrated in the first policy year and among firms with 50-99 employees. We also find an increase in employee leave-taking in the second policy year, driven by smaller firms.
We thank Junying Fang and Jett Pettus for excellent research assistance. We thank participants at APPAM and AEA conferences for helpful feedback. We gratefully acknowledge funding for this research from Pivotal Ventures, Washington Center for Equitable Growth, Russell Sage Foundation, and Ford Foundation, and support from the Columbia Population Research Center which is funded by the National Institute for Child Health and Human Development (NICHD) through grant P2CHD058486. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.