Evaluating Workplace Mandates with Flows Versus Stocks: An Application to California Paid Family Leave

Abstract

Employer mandates typically have small effects on wages and employment. Such effects should be most evident using data on employment transitions and wages among new hires. Quarterly Workforce Indicators (QWI) provides county by quarter by demographic group data on the number and earnings of new hires, separations, and recalls (extended leaves). The QWI is used to examine the effects of California's 2004 paid family leave (CPFL) program, comparing outcomes for young women in California to those for other workers within and outside of California. CPFL had little effect on earnings for young women, but increased separations, hiring, and worker mobility.