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Female labour supply and parental leave benefits - the causal effect of paying higher transfers for a shorter period of time

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  • Annette Bergemann
  • Regina Riphahn

Abstract

We study the labour supply effects of a major change in child-subsidy policy in Germany in 2007 designed to increase both fertility and shorten birth-related employment interruptions. The reform involved a move from a means-tested maternity leave benefit system that paid a maximum of 300 Euro for up to 2 years to a benefit system that replaced two-thirds of pre-birth earnings for at most 1 year. As the reform took place very recently, we estimate the labour supply effect by using data drawn from the German Socio-Economic Panel (GSOEP) on the intention of women to return to the labour market. Our results show that the reform yields most of the intended effects: the fraction of mothers who plan to return to the labour market within a year after the interview increased by 14 percentage points.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 18 (2011)
Issue (Month): 1 ()
Pages: 17-20

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Handle: RePEc:taf:apeclt:v:18:y:2011:i:1:p:17-20

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References

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  1. Jan Ondrich & C. Spiess & Qing Yang & Gert Wagner, 2003. "The Liberalization of Maternity Leave Policy and the Return to Work after Childbirth in Germany," Review of Economics of the Household, Springer, vol. 1(1), pages 77-110, January.
  2. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
  3. Ondrich, Jan & Spiess, C Katharina & Yang, Qing, 1996. "Barefoot and in a German Kitchen: Federal Parental Leave and Benefit Policy and the Return to Work after Childbirth in Germany," Journal of Population Economics, Springer, vol. 9(3), pages 247-66, August.
  4. Wen-Jui, Han & Ruhm, Christopher J. & Waldfogel, Jane, 2007. "Parental Leave Policies and Parents’ Employment and Leave-Taking," IZA Discussion Papers 3244, Institute for the Study of Labor (IZA).
  5. Michael Baker & Kevin Milligan, 2008. "How Does Job-Protected Maternity Leave Affect Mothers' Employment?," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 655-691, October.
  6. C. Spiess & Katharina Wrohlich, 2008. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model," Population Research and Policy Review, Springer, vol. 27(5), pages 575-591, October.
  7. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers on Multidisciplinary Panel Data Research 1, DIW Berlin, The German Socio-Economic Panel (SOEP).
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Citations

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Cited by:
  1. Vikman, Ulrika, 2013. "Paid parental leave to immigrants: An obstacle to labor market entrance?," Working Paper Series, Center for Labor Studies 2013:4, Uppsala University, Department of Economics.
  2. Mikko Myrskylä & Rachel Margolis, 2013. "Parental benefits improve parental well-being: evidence from a 2007 policy change in Germany," MPIDR Working Papers WP-2013-010, Max Planck Institute for Demographic Research, Rostock, Germany.
  3. Bernd Fitzenberger & Katrin Sommerfeld & Susanne Steffes, 2013. "Causal Effects on Employment after First Birth: A Dynamic Treatment Approach," SOEPpapers on Multidisciplinary Panel Data Research 576, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Nielsen, Helena Skyt, 2009. "Causes and Consequences of a Father's Child Leave: Evidence from a Reform of Leave Schemes," IZA Discussion Papers 4267, Institute for the Study of Labor (IZA).
  5. Martin Werding, 2014. "Children are costly, but raising them may pay," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 30(8), pages 253-276, January.
  6. Forslund, Anders & Fredriksson, Peter, 2009. "Income support systems, labour supply incentives and employment – some cross-country evidence," Working Paper Series 2009:32, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  7. Barbara Hanel & Regina T. Riphahn, 2012. "The Employment of Mothers – Recent Developments and their Determinants in East and West Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(2), pages 146-176, March.
  8. C. Katharina Spieß, 2011. "Vereinbarkeit von Familie und Beruf – wie wirksam sind deutsche „Care Policies“?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 4-27, 05.
  9. Eva Schlenker, 2009. "Frauen als Stille Reserve im Ingenieurwesen," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 315/2009, Department of Economics, University of Hohenheim, Germany.
  10. Drasch, Katrin, 2011. "Do changing institutional settings matter? : educational attainment and family related employment interruptions in Germany," IAB Discussion Paper 201113, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  11. Geyer, Johannes & Haan, Peter & Spieß, C. Katharina & Wrohlich, Katharina, 2013. "Das Elterngeld und seine Wirkungen auf das Haushaltseinkommen junger Familien und die Erwerbstätigkeit von Müttern," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 193-211.
  12. Kamila Cygan-Rehm, 2013. "Auswirkungen des Elterngeldes auf Folgegeburten in West- und Ostdeutschland," ifo Dresden berichtet, Ifo Institute for Economic Research at the University of Munich, vol. 20(06), pages 39-43, December.

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