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F3b Paid Family Leave: A Financial Safety Net for Unpaid Family Caregivers
Short Description
Family caregivers spend around 25 percent of their income on out-of-pocket caregiving costs. Recent studies have begun to show that these costs add financial strain for caregivers. Using SIPP 2001, 2004, and 2008 panels, I examine the relationship between caregiving and household unsecured debt levels and retirement savings. I then examine whether the introduction of California’s paid family leave policy (PFL), which offers at least an eight-week paid leave for employees, impacts this relationship. PFL policy allows caregivers to maintain their employment and a continued stream of income, which may be used to cover caregiving-related expenses. Using difference-in differences method, I evaluate of the extent to which PFL reduces financial debts and increases retirement savings. Preliminary results show suggestive evidence that PFL leads to changes in unsecured debts and retirement savings for California caregivers, although changes are modest and not significant.
Type of presentation
Accepted Oral Presentation