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Effects of parental leave policies on female career and fertility choices

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  • Shintaro Yamaguchi

Abstract

This paper constructs and estimates a dynamic discrete choice structural model of female employment and fertility decisions that incorporates job protection and cash benefits of parental leave legislation. The structural model is used for ex ante evaluation of policies that change the duration of job protection and/or the arrangement for cash benefits. Counterfactual simulations indicate that introducing an initial 1‐year job protection policy increases maternal employment significantly, but extending the existing job protection period from 1 to 3 years has little effect. In addition, the employment effects of cash benefits seem modest. Overall, parental leave policies have little effect on fertility.

Suggested Citation

  • Shintaro Yamaguchi, 2019. "Effects of parental leave policies on female career and fertility choices," Quantitative Economics, Econometric Society, vol. 10(3), pages 1195-1232, July.
    • Handle: RePEc:wly:quante:v:10:y:2019:i:3:p:1195-1232
    DOI: 10.3982/QE965
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    Cited by:

    1. LIU Yang & HAGIWARA Risa, 2023. "Female Labor Force Participation in Japan: An epidemiological approach using native and immigrant data," Discussion papers 23023, Research Institute of Economy, Trade and Industry (RIETI).
    2. Miyazaki, Koichi, 2019. "Optimal paid job-protected leave policy," MPRA Paper 96223, University Library of Munich, Germany.
    3. Hélène Périvier & Gregory Verdugo, 2024. "Where Are the Fathers? Effects of Earmarking Parental Leave for Fathers in France," ILR Review, Cornell University, ILR School, vol. 77(1), pages 88-118, January.
    4. Lalive, Rafael, 2021. "Mothers at Work: How Mandating Paid Maternity Leave Affects Employment, Earnings and Fertility," CEPR Discussion Papers 16418, C.E.P.R. Discussion Papers.
    5. Annette Bergemann & Regina T. Riphahn, 2023. "Maternal employment effects of paid parental leave," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 139-178, January.
    6. Katrine Jakobsen & Thomas H Jørgensen & Hamish Low, 2022. "Fertility and Family Labor Supply," Economics Series Working Papers 965, University of Oxford, Department of Economics.
    7. Wataru Kureishi & Colin McKenzie & Kei Sakata & Midori Wakabayashi, 2021. "Does a Mother's Early Return to Work after Childbirth Improve Her Future Employment Status?," Asian Economic Journal, East Asian Economic Association, vol. 35(3), pages 215-245, September.
    8. KITAO Sagiri & NAKAKUNI Kanato, 2023. "On the Trends of Technology, Family Formation, and Women's Time Allocation," Discussion papers 23075, Research Institute of Economy, Trade and Industry (RIETI).
    9. Miyazaki, Koichi, 2021. "A theory of optimal paid parental leave policies," MPRA Paper 109035, University Library of Munich, Germany.
    10. Hirokuni Iiboshi & Daikuke Ozaki & Yui Yoshii, 2023. "Child Care, Time Allocation, and Life Cycle," Papers 2304.11531, arXiv.org, revised Sep 2023.
    11. Zhang, Chi & Managi, Shunsuke, 2021. "Childcare availability and maternal employment: New evidence from Japan," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 83-105.
    12. Wang, Ruiting & Xu, Gang, 2020. "Can child allowances improve fertility in a gender discrimination economy?," Economic Modelling, Elsevier, vol. 93(C), pages 162-174.
    13. HAGIWARA Risa & LIU Yang, 2023. "Work-life Conflicts of Native and Immigrant Women in Japan," Discussion papers 23056, Research Institute of Economy, Trade and Industry (RIETI).
    14. KITAO Sagiri & MIKOSHIBA Minamo, 2022. "Why Women Work the Way They Do in Japan: Roles of Fiscal Policies," Discussion papers 22016, Research Institute of Economy, Trade and Industry (RIETI).
    15. Girsberger, Esther Mirjam & Hassani-Nezhad, Lena & Karunanethy, Kalaivani & Lalive, Rafael, 2023. "Mothers at work: How mandating a short maternity leave affects work and fertility," Labour Economics, Elsevier, vol. 84(C).
    16. Regmi, Krishna & Wang, Le, 2022. "Maternity Leave," GLO Discussion Paper Series 1184, Global Labor Organization (GLO).

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