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Parental leave length and mothers’ careers: what can be inferred from occupational allocation?

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  • Barbara Pertold-Gebicka

Abstract

This paper shows that the time spent on parental leave affects mothers’ careers several years after childbirth. It also shows that policy-relevant conclusions can be drawn from occupational allocation data even in the absence of individual wage or earnings information. I take advantage of a legislative reform that changed the duration of parental benefit payments effective in the Czech Republic in 2008. Introducing the possibility of the flexible timing of benefit collection over the period of 2–4 years, as opposed to the only option of 4 years before, the reform significantly increased the share of mothers returning to work before their youngest child turns four. This further translates to increased representation of employed mothers in high-skilled occupations and increases the average occupation wage of the affected mothers 6 to 8 years after childbirth. These findings indicate that shorter leaves are beneficial for mothers’ careers, at least in the medium run.

Suggested Citation

  • Barbara Pertold-Gebicka, 2020. "Parental leave length and mothers’ careers: what can be inferred from occupational allocation?," Applied Economics, Taylor & Francis Journals, vol. 52(9), pages 879-904, February.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:879-904
    DOI: 10.1080/00036846.2019.1646870
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    Cited by:

    1. Bicakova, Alena & Kaliskova, Klara, 2022. "Is Longer Maternal Care Always Beneficial? The Impact of a Four-Year Paid Parental Leave," IZA Discussion Papers 15640, Institute of Labor Economics (IZA).
    2. Alena Bicakova & Klara Kaliskova, 2021. "Career-breaks and Maternal Employment in CEE Countries," CERGE-EI Working Papers wp706, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    3. Jakub Grossmann & Filip Pertold & Michal Šoltés, 2023. "Parental Allowance Increase and Labor Supply: Evidence from a Czech Reform," CESifo Working Paper Series 10367, CESifo.

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