Impact of Paid Family Leave on Labor and Mental Health

This research article examines the effects of paid family leave (PFL) policies on labor market outcomes and mental health responses among individuals facing health shocks in their families. Utilizing data from the Medical Expenditure Panel Survey, the study focuses on the experiences of spouses and parents when their family members undergo hospitalizations or surgeries. The findings indicate that access to PFL significantly enhances job continuity for wives of individuals who are hospitalized, with a notable decrease in the likelihood of these women leaving their jobs to provide care. However, the study reveals no significant effects of PFL on the mental health of these caregivers, although there is a reduction in the use of mental health-related medications. The research also highlights that PFL does not appear to benefit parents of children experiencing health shocks, suggesting that the policy may be less applicable to this group. Overall, the study contributes to the discourse on PFL by providing empirical evidence on its impacts across different caregiver demographics.