Wage loss as a percent of family income after paid or unpaid FML (percent) by parent status
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|Last Updated||June 9, 2020|
diversitydatakids.org calculations of Current Population Survey, 2014-2017 March Annual Social and Economic Supplement, Public Use Microdata Files, IPUMS-CPS, University of Minnesota, www.ipums.org.
Estimates are presented in percentages and are weighted with replicate weights. The sample for this analysis is working adults, ages 21-64, who worked 50 or more weeks in the previous year and lived in states that have not passed a statewide paid leave law (N=172,078). A working adult is an individual aged 16 and older who reported working at a job or business at any time during the previous calendar year (with respect to the time of survey administration) including temporary, part-time, or seasonal work. Working adults with $0 in income/wages in the previous year (N=8,641) or with negative total family income the previous year (N=89) were excluded from the analysis. The high number of working adults with $0 in income/wages is due to these workers being self-employed, unincorporated during the previous year. Working adults living in five states (California, New Jersey, New York, Rhode Island, and Washington) or in the District of Columbia were excluded because these jurisdictions have implemented or passed statewide paid leave laws. We assume that only one working adult in a family takes leave at a time. Due to the lack of data about employer-provided benefits, these estimates do not account for any paid leave benefits provided through employers that could potentially mitigate wage loss. The paid leave scenario is based on the FAMILY Act bill which provides workers a monthly wage replacement rate of 66% of a worker's average monthly wage from the previous year. The Act provides for a maximum wage replacement amount of $4,000 per month and a minimum wage replacement amount of $580 per month. There is a small percentage of workers who have wage replacement that falls under the minimum amount due to having very low income. These estimates do not account for the estimated $6 per month that workers would pay into the FAMILY Act insurance program. These estimates also do not account for FAMILY Act eligibility requirements; however, between 78 and 90 percent of adults are estimated to be eligible for the program. These estimates are calculated on a quarterly (3 month) timeframe. Lost wages as a percentage of total family income is estimated by comparing workers' lost wages due to leave in 2016 dollars to their family's total quarterly (3 month) income in 2016 dollars. After determining lost wages as a percentage of total family income for each working adult in our sample, we take the median of all estimates. Parents are adults who reported having at least one of their own children (including biological, adopted, or step- children) between the ages of 0 and 17 living in their household.