National Tax Journal
Elena Patel, Tanya Byker, Kristin Smith
Division of Quantitative Analysis of Markets and Organizations
Abstract
Paid leave is an essential benefit for workers, but it remains out of reach for many in the U.S. The Families First Coronavirus Response Act (FFCRA), which provided emergency access to paid leave for workers at small firms, aimed to help workers manage the urgent challenges of taking paid leave during the pandemic. We find that this policy eased the constraints created by the pandemic and addressed the limited availability of paid leave, a persistent shortcoming of the US labor market. Heterogeneity analysis suggests our results are driven by parents who were particularly constrained as the pandemic wore on and childcare options were limited.
