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Labour Supply Responses to Paid Parental Leave

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  • Karimi, Arizo

    ()
    (Uppsala Center for Labor Studies)

  • Lindahl, Erica

    ()
    (Institute for evaluation of labour market and education policy)

  • Skogman Thoursie, Peter

    ()
    (Department of Economics, Stockholm University)

Abstract

Women account for the majority of parental leave take-up, which is likely one of the major reasons for the gender gap in income and wages. Consequently, many countries exert effort to promote a more gender equal division of parental leave. Indeed, the last decades have seen an increase in fathers’ take-up of parental leave benefits, but the gender earnings gap has remained fairly constant. In this paper we re-evaluate the labour supply responses of both mothers and fathers to three major reforms in the Swedish parental leave system, recognizing that take up of paid parental leave might not fully reflect actual time off from work in a system where job-protection exceeds paid leave. We find that both mothers and fathers decreased their labour supply to the same extent as a response to an increase in paid parental leave without gender restrictions. In contrast, we find no support for any changes in fathers’ labour supply due to reforms introducing gender quotas in paid leave.

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Bibliographic Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series, Center for Labor Studies with number 2012:20.

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Length: 38 pages
Date of creation: 30 Nov 2012
Date of revision:
Handle: RePEc:hhs:uulswp:2012_020

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Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Keywords: natural experiment; parental leave; labour supply;

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  1. Rafael Lalive & Josef Zweimüller, 2009. "How does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments," The Quarterly Journal of Economics, MIT Press, vol. 124(3), pages 1363-1402, August.
  2. Ghazala Azmat & Rosa Ferrer Zarzuela, 2012. "Gender gaps in performance: Evidence from young lawyers," Economics Working Papers 1300, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2012.
  3. Ekberg, John & Eriksson, Rickard & Friebel, Guido, 2013. "Parental leave — A policy evaluation of the Swedish “Daddy-Month” reform," Journal of Public Economics, Elsevier, vol. 97(C), pages 131-143.
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  6. Johansson, Per & Palme, Marten, 2005. "Moral hazard and sickness insurance," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1879-1890, September.
  7. Baum, Charles II, 2003. "The effect of state maternity leave legislation and the 1993 Family and Medical Leave Act on employment and wages," Labour Economics, Elsevier, vol. 10(5), pages 573-596, October.
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  12. Goldin, Claudia D. & Bertrand, Marianne & Katz, Lawrence F., 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors," Scholarly Articles 8810041, Harvard University Department of Economics.
  13. 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.
  14. Elina Pylkkänen & Nina Smith, 2003. "Career Interruptions Due to Parental Leave: A Comparative Study of Denmark and Sweden," OECD Social, Employment and Migration Working Papers 1, OECD Publishing.
  15. 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.
  16. Eriksson, Rickard, 2005. "Parental Leave in Sweden: The Effects of the Second Daddy Month," Working Paper Series 9/2005, Swedish Institute for Social Research.
  17. Datta Gupta, Nabanita & Smith, Nina & Verner, Mette, 2006. "Child Care and Parental Leave in the Nordic Countries: A Model to Aspire to?," IZA Discussion Papers 2014, Institute for the Study of Labor (IZA).
  18. Rebecca Ray & Janet C. Gornick & John Schmitt, 2008. "Parental Leave Policies in 21 Countries: Assessing Generosity and Gender Equality," CEPR Reports and Issue Briefs 2008-23, Center for Economic and Policy Research (CEPR).
  19. Florence Jaumotte, 2003. "Labour Force Participation of Women: Empirical Evidence on The Role of Policy and Other Determinants in OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2003(2), pages 51-108.
  20. 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.
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