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

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Author Info
Pylkkänen, Elina () (University of Göteborg and the Ministry of Finance,)
Smith, Nina () (Department of Economics, Aarhus School of Business)

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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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Publisher 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

Contact details of provider:
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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Related research
Keywords: Maternal Leave; Parental Leave; Childcare; Family Policy; Mothers’ Labor Supply;

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Find related papers by 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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  1. Helena Skyt Nielsen, 2009. "Causes and Consequences of a Father’s Child Leave: Evidence from a Reform of Leave Schemes," Economics Working Papers 2009-08, School of Economics and Management, University of Aarhus. [Downloadable!]
    Other versions:
  2. 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. [Downloadable!] (restricted)
  3. Magdalena 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. [Downloadable!]
  4. Hong, Ying & Corman, Diana, 2005. "Women´s Return to Work after First Birth in Sweden during 1980-2000," Arbetsrapport 2005:19, Institute for Futures Studies. [Downloadable!]
  5. Kristin Kleinjans, 2008. "Do Gender Differences in Preferences for Competition Matter for Occupational Expectations?," Economics Working Papers 2008-09, School of Economics and Management, University of Aarhus. [Downloadable!]
  6. C. Katharina Spiess & Katharina Wrohlich, 2006. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Scandinavian Model," IZA Discussion Papers 2372, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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