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Career Interruptions due to Parental Leave - A Comparative Study of Denmark and Sweden

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  • Pylkkänen, Elina

    ()
    (University of Göteborg and the Ministry of Finance,)

  • Smith, Nina

    ()
    (Department of Economics, Aarhus School of Business)

Abstract

Parental leave mandates are associated with high female employment rates, but with reductions in relative female wages if leave is of extended duration. We analyze the impact of family policies (parental leave and childcare prices) of Denmark and Sweden on women’s career breaks due to childbirth. These countries are culturally similar and share the same type of welfare state ideology, but differ remarkably in pursued family policies. Our analysis takes advantage of the availability of comparable longitudinal data and allows us to estimate parallel models across the two countries. The impact of family policies and economic incentives on the probability of returning to the labor market is estimated using a duration model approach. Our results show that economic incentives affect the behavior of mothers in both countries. However, the parental leave mandates as such are very important determinants for the observed behavior. Based on policy simulations we find that if fathers were given more parental leave, it would promote the labor supply of women.

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Bibliographic Info

Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 04-1.

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Length: 43 pages
Date of creation: 26 May 2004
Date of revision:
Handle: RePEc:hhs:aareco:2004_001

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Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
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Keywords: Maternal Leave; Parental Leave; Childcare; Family Policy; Mothers’ Labor Supply;

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References

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  1. Gubta, Nabanita Datta & Smith, Nina, 2000. "Children and Career Interruptions: The Family Gap in Denmark," CLS Working Papers 00-3, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  2. Klerman, Jacob Alex & Leibowitz, Arleen, 1990. "Child Care and Women's Return to Work after Childbirth," American Economic Review, American Economic Association, American Economic Association, vol. 80(2), pages 284-88, May.
  3. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc.
  4. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110 National Bureau of Economic Research, Inc.
  5. Jane Waldfogel, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(1), pages 137-156, Winter.
  6. Christopher J. Ruhm, 1996. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," NBER Working Papers 5688, National Bureau of Economic Research, Inc.
  7. Siv S. Gustafsson & Shirley Dex & Cécile M. M. P. Wetzels & Jan Dirk Vlasblom, 1996. "Women`s labor force transitions in connection with childbirth: A panel data comparison between Germany, Sweden and Great Britain," Journal of Population Economics, Springer, Springer, vol. 9(3), pages 223-246.
  8. 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, Springer, vol. 1(1), pages 77-110, January.
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Cited by:
  1. Julia Bredtmann & Jochen Kluve & Sandra Schaffner, 2009. "Women's Fertility and Employment Decisions under Two Political Systems - Comparing East and West Germany before Reunification," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0149, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Karimi, Arizo & Lindahl, Erica & Skogman Thoursie, Peter, 2012. "Labour Supply Responses to Paid Parental Leave," Working Paper Series, Center for Labor Studies, Uppsala University, Department of Economics 2012:20, Uppsala University, Department of Economics.
  3. 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, Springer, vol. 27(5), pages 575-591, October.
  4. Hong, Ying & Corman, Diana, 2005. "Women´s Return to Work after First Birth in Sweden during 1980-2000," Arbetsrapport, Institute for Futures Studies 2005:19, Institute for Futures Studies.
  5. C. Katharina Spieß & Katharina Wrohlich, 2006. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Scandinavian Model," Discussion Papers of DIW Berlin 630, DIW Berlin, German Institute for Economic Research.
  6. 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.
  7. Julie L. Hotchkiss & M. Melinda Pitts & Mary Beth Walker, 2010. "Assessing the impact of education and marriage on labor market exit decisions of women," Working Paper, Federal Reserve Bank of Atlanta 2010-02, Federal Reserve Bank of Atlanta.
  8. Alessandra Casarico & Paola Profeta & Chiara Pronzato, 2012. "On the local labor market determinants of female university enrolment in European regions," Carlo Alberto Notebooks, Collegio Carlo Alberto 278, Collegio Carlo Alberto.
  9. Julie Hotchkiss & M. Pitts & Mary Walker, 2011. "Labor force exit decisions of new mothers," Review of Economics of the Household, Springer, Springer, vol. 9(3), pages 397-414, September.
  10. Joanna Osiñska, 2013. "Postawy wzglêdem euro i ich determinanty– przegl¹d badañ i literatury przedmiotu," Working Papers 70, Institute of Statistics and Demography, Warsaw School of Economics.
  11. Magdalena M. Muszynska, 2004. "Employment after childbearing: a comparative study of Italy and Norway," MPIDR Working Papers WP-2004-030, Max Planck Institute for Demographic Research, Rostock, Germany.
  12. Marianne Simonsen, 2005. "Availability and Price of High Quality Day Care and Female Employment," Economics Working Papers, School of Economics and Management, University of Aarhus 2005-08, School of Economics and Management, University of Aarhus.
  13. Kristin Kleinjans, 2008. "Do Gender Differences in Preferences for Competition Matter for Occupational Expectations?," Economics Working Papers, School of Economics and Management, University of Aarhus 2008-09, School of Economics and Management, University of Aarhus.
  14. Helena Skyt Nielsen, 2009. "Causes and Consequences of a Father’s Child Leave: Evidence from a Reform of Leave Schemes," Economics Working Papers, School of Economics and Management, University of Aarhus 2009-08, School of Economics and Management, University of Aarhus.
  15. Marit Rønsen & Ragni Hege Kitterød, 2012. "Entry into work following childbirth among mothers in Norway. Recent trends and variation," Discussion Papers, Research Department of Statistics Norway 702, Research Department of Statistics Norway.
  16. Anna Matysiak & Dorota Wêziak-Bia³owolska, 2013. "Country-Specific Conditions for Work and Family Reconciliation: An Attempt at Quantification," Working Papers 67, Institute of Statistics and Demography, Warsaw School of Economics.
  17. Julie L. Hotchkiss & M. Melinda Pitts & Mary Beth Walker, 2011. "To work or not to work: the economics of a mother's dilemma," Working Paper, Federal Reserve Bank of Atlanta 2011-02, Federal Reserve Bank of Atlanta.
  18. Blome, Agnes, 2011. "Work/care policies in European welfare states: Continuing variety or change towards a common model?," Discussion Papers, Research Professorship Demographic Development, Social Change, and Social Capital SP I 2011-401, Social Science Research Center Berlin (WZB).
  19. C. Katharina Spieß, 2011. "Vereinbarkeit von Familie und Beruf – wie wirksam sind deutsche „Care Policies“?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, Verein für Socialpolitik, vol. 12(s1), pages 4-27, 05.

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