This paper provides the first evidence of the effect of a U.S. paid maternity leave policy on the long-run outcomes of children. I exploit variation in access to paid leave that was created by long-standing state differences in short-term disability insurance coverage and the state-level roll-out of laws banning discrimination against pregnant workers in the 1960s and 1970s. While the availability of these benefits sparked a substantial expansion of leave-taking by new mothers, it also came with a cost. The enactment of paid leave led to shifts in labor supply and demand that decreased wages and family income among women of child-bearing age. In addition, the first generation of children born to mothers with access to maternity leave benefits were 1.9 percent less likely to attend college and 3.1 percent less likely to earn a four-year college degree.
I was curious so I clicked through and took a look. It seems that the key comparisons are at the state-year level, with some policy changes happening in different states at different years. So what I’d like to see are some time series for individual states and some scatterplots of state-years. Some other graphs, too, although I’m not quite sure what. The basic idea is that this is an observational study in which the treatment is some policy change, so we’re comparing state-years with and without this treatment; I’d like to see a scatterplot of the outcome vs. some pre-treatment measure, with different symbols for treatment and control cases. As it is, I don’t really know what to make of the results, what with all the processing that has gone on between the data and the estimate.
In general I am skeptical about results such as given in the above abstract because there are so many things that can affect college attendance. Trends can vary by state, and this sort of analysis will simply pick up whatever correlation there might be, between state-level trends and the implementation of policies. There are lots of reasons to think that the states where a given policy would be more or less likely to be implemented, happen to be states where trends in college attendance are higher or lower. This is all kind of vague because I’m not quite sure what is going on in the data—I didn’t notice a list of which states were doing what. My general point is that to understand and trust such an analysis I need a “trail of bread crumbs” connecting data, theory, and conclusions. The theory in the paper, having to do with economic incentives and indirect effects, seemed a bit farfetched to me but not impossible—but it’s not enough for me to just have the theory and the regression table; I really need to understand where in the data the result is coming from. As it is, this just seems like two state-level variables that happen to be correlated. There might be something here; I just can’t say.
P.S. Cowen’s commenters express lots of skepticism about this claim. I see this skepticism as a good sign, a positive aspect of the recent statistical crisis in science that people do not automatically accept this sort of quantitative claim, even when it is endorsed by a trusted intermediary. I suspect that Cowen too is happy that his readers read him critically and don’t believe everything he posts!