Family Leave and Public Policy: Impact on Firms and Workers

Economists Sari Kerr and Kristin Butcher will examine the effects of paid family leave on firm and worker outcomes. They will utilize employer-household panel data from the Longitudinal Employer-Household Dynamics (LEHD) database and analyze the extent to which paid leave policy alters the earnings gap between men and women, and if there is a net cost or benefit to the firm from providing such policies. They will match firms and workers over time and observe whether workers persist with companies longer when paid parental leave is available and how their wages evolve when they stay with the same employer.