The effect of California's paid family leave policy on parent health: A quasi-experimental study

The U.S. is the only high-income country without a national paid family leave (PFL) policy. While a handful of U.S. states have implemented PFL policies in recent years, there are few studies that examine the effects of these policies on health. In this study, we tested the hypothesis that California's PFL policy-implemented in 2004-improved parent health outcomes. Data were drawn from the 1993-2017 waves of the Panel Study of Income Dynamics, a large diverse national cohort study of U.S. families (N = 6,690). We used detailed longitudinal sociodemographic information about study participants and a quasi-experimental difference-in-differences analytic technique to examine the effects of California's PFL policy on families who were likely eligible for the paid leave, while accounting for underlying trends in these outcomes among states that did not implement PFL policies in this period. Outcomes included self-rated health, psychological distress, overweight and obesity, and alcohol use. We found improvements in self-rated health and psychological distress, as well as decreased likelihood of being overweight and reduced alcohol consumption. Improvements in health status and psychological distress were greater for mothers, and reductions in alcohol use were greater for fathers. Results were robust to alternative specifications. These findings suggest that California's PFL policy had positive impacts on several health outcomes, providing timely evidence to inform ongoing policy discussions at the federal and state levels. Future studies should examine the effects of more recently implemented state and local PFL policies to determine whether variation in policy implementation and generosity affects outcomes.