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

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Listed:
  • 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.

Suggested Citation

  • Pylkkänen, Elina & Smith, Nina, 2004. "Career Interruptions due to Parental Leave - A Comparative Study of Denmark and Sweden," Working Papers 04-1, University of Aarhus, Aarhus School of Business, Department of Economics.
    • Handle: RePEc:hhs:aareco:2004_001
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    References listed on IDEAS

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    More about this item

    Keywords

    Maternal Leave; Parental Leave; Childcare; Family Policy; Mothers’ Labor Supply;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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