Do State Paid Sick Leave Mandates Increase Work Hours? Evidence from Low-Wage Service Sector Workers

Abstract

This paper examines whether state mandatory paid sick leave (PSL) laws increase work hours among low-wage service sector workers. Using a difference-in-differences design that exploits the staggered adoption of PSL mandates across 16 U.S. states between 2012 and 2022, I find that PSL laws increase weekly work hours by approximately 0.67 hours (2.4%) among low-wage service workers. Effects are larger for workers with children (+1.14 hours) and in high-contact occupations (+0.91 hours). Event study analyses show no evidence of pre-trends, with effects emerging immediately post-adoption and persisting over time. These findings suggest PSL mandates improve employment stability for vulnerable workers without the negative employment effects some critics predicted. \medskip JEL Codes: J22, J32, J38, I18 Keywords: Paid sick leave, labor supply, difference-in-differences, service workers, mandatory benefits