How does paid family leave affect unpaid care providers?

This study uses difference in difference methodology applied to data from the Survey of Income and Program Participation in 1998, 2003, 2006 and 2011 to assess the impact of California's paid family leave law on labor market outcomes of unpaid care providers, controlling for nationwide compositional changes in the sample of unpaid care providers. I find California's paid family leave law increased the likelihood of being an unpaid care provider in the labor force by 1% among women and the higher educated. Increased labor force participation enhances the retirement preparedness of unpaid care providers, most of whom are women, and suggests a role for paid leave policies in tackling the U.S. retirement savings shortfall.