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Employment Protection and Parental Child Care

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  • Olsson, Martin

    ()
    (Research Institute of Industrial Economics (IFN))

Abstract

I examine if employment protection affects parental childcare. I find that a softer employment protection has a substantial effect on how parents use and divide paid childcare between them. The identification relies on a reform that made it easier for employers in Sweden to dismiss workers in small firms. I estimate that a softer employment protection reduces the total days of parental childcare in targeted firms, measured as total days of parental leave or temporary parental leave. Both a sorting effect and a behavioral effect can explain the reduced childcare. I also find evidence of a redistribution effect of paid parental childcare within households if only one partner was affected by the reform. I interpret the redistribution effect as a way of evading an external cost on the child.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 952.

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Length: 35 pages
Date of creation: 06 Feb 2013
Date of revision:
Handle: RePEc:hhs:iuiwop:0952

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
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Web page: http://www.ifn.se/
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Keywords: Employment protection; Parental childcare; Within family distribution;

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References

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  1. Albrecht, J & Edin, P-A & Sundstrom, M & Vroman, S-B, 1996. "Career Interruptions and Subsequent Earning : A Reexamination Using Swedish Data," Papers 1996-23, Uppsala - Working Paper Series.
  2. Regina T. Riphahn & Anja Thalmaier, 2001. "Behavioral Effects of Probation Periods: An Analysis of Worker Absenteeism," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 221(2), pages 179-201.
  3. Pierre-André Chiappori & Richard Blundell & Costas Meghir, 2002. "Collective labour supply with children," IFS Working Papers W02/08, Institute for Fiscal Studies.
  4. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
  5. Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers 94-16, DELTA (Ecole normale supérieure).
  6. Etienne Wasmer, 2006. "General versus Specific Skills in Labor Markets with Search Frictions and Firing Costs," American Economic Review, American Economic Association, vol. 96(3), pages 811-831, June.
  7. 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.
  8. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 699-726, August.
  9. Andrea Ichino & Regina T. Riphahn, 2005. "The Effect of Employment Protection on Worker Effort: Absenteeism During and After Probation," Journal of the European Economic Association, MIT Press, vol. 3(1), pages 120-143, 03.
  10. Parys, Juliane & Schwerhoff, Gregor, 2010. "Efficient Intra-Household Allocation of Parental Leave," IZA Discussion Papers 5113, Institute for the Study of Labor (IZA).
  11. Card, David & Ibarrarán, Pablo & Villa, Juan Miguel, 2011. "Building in an Evaluation Component for Active Labor Market Programs: A Practitioner's Guide," IZA Discussion Papers 6085, Institute for the Study of Labor (IZA).
  12. Olsson, Martin, 2007. "Employment Protection and Sickness Absence," Working Paper Series 717, Research Institute of Industrial Economics.
  13. repec:idb:brikps:58518 is not listed on IDEAS
  14. Anna Amilon, 2007. "On the sharing of temporary parental leave: the case of Sweden," Review of Economics of the Household, Springer, vol. 5(4), pages 385-404, December.
  15. Alain Delacroix, 2003. "Transitions into Unemployment and the Nature of Firing Costs," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(3), pages 651-671, July.
  16. Michael Pries & Richard Rogerson, 2005. "Hiring Policies, Labor Market Institutions, and Labor Market Flows," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 811-839, August.
  17. Chiappori, P.A. & Ekeland, I., 2006. "The micro economics of group behavior: General characterization," Journal of Economic Theory, Elsevier, vol. 130(1), pages 1-26, September.
  18. Engellandt, Axel & Riphahn, Regina, 2004. "Temporary Contracts and Employee Effort," CEPR Discussion Papers 4178, C.E.P.R. Discussion Papers.
  19. von Below, David & Thoursie, Peter Skogman, 2010. "Last in, first out?: Estimating the effect of seniority rules in Sweden," Labour Economics, Elsevier, vol. 17(6), pages 987-997, December.
  20. Adriana D. Kugler & Gilles Saint-Paul, 2004. "How Do Firing Costs Affect Worker Flows in a World with Adverse Selection?," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 553-584, July.
  21. Brian A. Jacob, 2010. "The Effect of Employment Protection on Worker Effort: Evidence from Public Schooling," NBER Working Papers 15655, National Bureau of Economic Research, Inc.
  22. Hopenhayn, Hugo & Rogerson, Richard, 1993. "Job Turnover and Policy Evaluation: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 101(5), pages 915-38, October.
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Cited by:
  1. Boye, Katarina, 2014. "Can you stay at home today? The relationship between economic dependence, parents’ occupation and care leave for sick children," Working Paper Series 2014:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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