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THE EFFECTS OF GOVERNMENT-MANDATED FAMILY LEAVE ON EMPLOYER FAMILY LEAVE POLICIES

Authors

  • CHARLES L. BAUM II

    1. Associate Professor of Economics, Middle Tennessee State University, Economics and Finance Department, Box 27, MTSU, Murfreesboro, TN 37132. Phone 1-615-898-2527, Fax 1-615-898-5596, E-mail cbaum@mtsu.edu
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Abstract

The 1993 Family and Medical Leave Act (FMLA) guarantees employees 12 weeks of unpaid leave. However, studies find either small or insignificant effects of the legislation on employment, work, leave-taking, and wages. Perhaps employees are unable to use the leave because it is unpaid or they do not need family leave because they already may take off work via vacation, sick leave, and disability leave policies. If so, then family leave legislation may have increased employer-provided family leave without corresponding effects on employment-related outcomes. This article examines family leave legislation's effects on employers' family leave policies, finding positive effects. (JEL J1, J2, J3)

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