The Impact of Parental Leave Statutes on Maternal Return to Work after Childbirth

Sally C. Curtin, University of Maryland
Sandra Hofferth, University of Maryland

Although new mothers are more likely than ever to be in the labor force, the time around childbirth is a dynamic period with women quitting work altogether or changing jobs to accommodate the demands of their infants. The 1993 Family Medical Leave Act (FMLA) may have changed incentives and opportunities for employment among new mothers. Using data from the Panel Study of Income Dynamics (PSID) and its 1997 Child Development Supplement (CDS), this paper will examine whether the FMLA or state-legislated leave packages are associated with the following changes: continuity of employment for new mothers, return to previous employer, and post-birth earnings gains. Results indicate a positive association between the FMLA and both the rapidity of the mother's return to employment and the probability that she returns to the same job. Surprisingly, the FMLA was associated with a negative post-birth earnings gain after two years.