There is no conflict of interest.
Highlights
- The study's objective was to examine the impact of New York’s Paid Family Leave (PFL) policy on employee leave-taking.
- The study used a difference-in-differences design to compare the outcomes of employees in firms from New York that had PFL with the outcomes of employees in matched firms from Pennsylvania who did not have PFL. The authors used survey data and statistical models to compare the outcomes between the groups before and after PFL went into effect.
- The study found no significant relationship between PFL and employee leave-taking.
- This study receives a low evidence rating. This means we are not confident that the New York estimated effects are attributable to New York’s Paid Family Leave; other factors are likely to have contributed.
Intervention Examined
Features of the Intervention
New York's Paid Family Leave (PFL) was the fourth state-level policy passed in the United States. Launched in January 2018, the PFL program applied to all workers in the private sector, whereas the Family and Medical Leave Act (FMLA) applies only to employers with 50 or more employees. The implementation of the PFL program occurred in phases from 2018 to 2021, gradually increasing both the duration of paid leave and the percentage of average earnings replaced. Initially, the program offered up to eight weeks of paid leave at 50 percent of an employee's average weekly wage (AWW). By 2021, this expanded to a maximum of 12 weeks of paid leave at 67 percent of an employee's AWW, with a cap of $971.61 per week. The PFL program is funded through employee payroll taxes.
Features of the Study
The study was a difference-in-differences design with a matched comparison group. A total of 2,364 firms from New York, where employees could access PFL, were matched with 655 firms from Pennsylvania, which lacked a state PFL policy. The authors matched firms on industry sector, location in a metro area, number of employees, county unemployment rate, and AWW in the county. They purposefully selected firms with 10 to 99 employees, ensuring a balanced representation across three employee size categories: 10-19, 20-49, and 50-99.
The study authors conducted surveys over four years, from 2016 to 2019. They also used other data sources, such as the 2016 Quarterly Census of Employment and Wages and the U.S. Department of Agriculture's Rural-Urban Continuum codes to match New York and Pennsylvania firms. The main outcome of interest was employee leave-taking including any paid family leave, parental leave, and serious family illness. The authors used statistical models to compare the outcomes of employees in the two states.
Findings
Employer benefits receipt
- The study did not find a significant relationship between PFL and employee leave-taking behaviors. No significant relationship was found when analyzed by firm size.
Considerations for Interpreting the Findings
The authors compared employee leave-taking behavior in New York compared to Pennsylvania. Because the analysis considered a policy operating in only one state, it is impossible to disentangle the effect of New York’s PFL from the effect of the state itself; this is known as a confounding factor. It is possible that some findings in the New York group were based on other New York-specific characteristics not included in the analyses. We cannot attribute the estimated effects with confidence to the New York PFL and not to other factors. Therefore, the study is not eligible for a moderate causal evidence rating, the highest rating available for nonexperimental designs.
Causal Evidence Rating
Research Guidelines
Review Protocol: Living Systematic Annual Search and Review Protocol
Review Guidelines: Causal Evidence Guidelines