Economic and Health Impacts of Paid Parental, Caregiving, and Medical Leave: A review of existing literature and evidence
By Karen Kling, H. Luke Shaefer, and Betsey Stevenson
Executive Summary
A growing body of evidence demonstrates that providing at least partial pay for workers to attend to major caregiving responsibilities and to their own medical needs can safeguard the health and economic well-being of workers and their families, while having minimal negative and perhaps even positive impacts on the overall business ecosystem. Because women, particularly women of color, tend to bear a disproportionate share of caregiving responsibilities in the U.S., paid leave policies can also be critical to addressing inequities across gender and race.
Commissioned by the State of Michigan, this report provides context and analysis regarding the potential impacts of a paid family leave policy to inform evidence-based conversations around the merits and potential limits of such a policy.
Key Takeaways
- Thirteen states and the District of Columbia have passed state paid family and medical leave laws.
- Paid parental leave, caregiving leave, and medical leave — each individually and when combined — have demonstrated positive economic impacts and positive health impacts for employees and their families.
- A large evidence base finds that the potential benefits of paid leave outweigh expected costs. Michigan’s workers and employers alike would benefit from a comprehensive paid leave policy covering parental, family caregiving, and medical leave.
- Paid leave policies could address gender and racial inequities, particularly benefiting women and women of color who bear a disproportionate share of caregiving responsibilities.