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The Impact of Paid Maternity Leave on Labour Market Outcomes

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  • Barbara Hanel

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

I estimate the effect of paid maternity leave on mothers probability of employment after birth, how this effect varies with the age of the child, and the effect on wages when the child is about four years old. A statistical matching approach is applied. The matching procedure controls for an extensive range of pre-birth job characteristics, health and human capital measures, and attitudes towards nonmaternal care. Mothers appear to delay their return to work after a birth if they are entitled to paid maternity leave, but the delay is short and does not affect wages in the long-run.

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File URL: http://www.melbourneinstitute.com/downloads/working_paper_series/wp2012n19.pdf
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Bibliographic Info

Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2012n19.

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Length: 37 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:iae:iaewps:wp2012n19

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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
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Web page: http://www.melbourneinstitute.com/
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Related research

Keywords: Maternity leave; maternal employment; maternal wages.;

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References

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  1. 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.
  2. Denise Doiron & Guyonne Kalb, 2004. "Demands for Childcare and Household Labour Supply in Australia," Melbourne Institute Working Paper Series wp2004n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Michael Baker & Kevin Milligan, 2008. "How Does Job-Protected Maternity Leave Affect Mothers' Employment?," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 655-691, October.
  4. Yoshio Higuchi & Jane Waldfogel & Masahiro Abe, 1999. "Family leave policies and women's retention after childbirth: Evidence from the United States, Britain, and Japan," Journal of Population Economics, Springer, vol. 12(4), pages 523-545.
  5. Janeen Baxter & University of Queensland, 2011. "Perceptions of work-family balance: how effective are family-friendly policies?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 14(2), pages 139-151.
  6. Lawrence M. Berger & Jane Waldfogel, 2004. "Maternity leave and the employment of new mothers in the United States," Journal of Population Economics, Springer, vol. 17(2), pages 331-349, 06.
  7. Christopher J. Ruhm, 2000. "Parental Employment and Child Cognitive Development," NBER Working Papers 7666, National Bureau of Economic Research, Inc.
  8. Rebecca Edwards, 2006. "Maternity Leave and the Evidence for Compensating Wage Differentials in Australia," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 281-297, 09.
  9. Waldfogel, Jane, 1998. "The Family Gap for Young Women in the United States and Britain: Can Maternity Leave Make a Difference?," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 505-45, July.
  10. Charles L. Baum II, 2003. "The Effects of Maternity Leave Legislation on Mothers' Labor Supply after Childbirth," Southern Economic Journal, Southern Economic Association, vol. 69(4), pages 772-799, April.
  11. Robert Breunig & Andrew Weiss & Chikako Yamauchi & Xiaodong Gong & Joseph Mercante, 2011. "Child Care Availability, Quality and Affordability: Are Local Problems Related to Labour Supply?," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 109-124, March.
  12. Sakiko Tanaka, 2005. "Parental leave and child health across OECD countries," Economic Journal, Royal Economic Society, vol. 115(501), pages F7-F28, 02.
  13. Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute for the Study of Labor (IZA).
  14. Lawrence M. Berger & Jennifer Hill & Jane Waldfogel, 2005. "Maternity leave, early maternal employment and child health and development in the US," Economic Journal, Royal Economic Society, vol. 115(501), pages F29-F47, 02.
  15. Jennifer Renda & Jennifer Baxter, 2009. "Exploring the Work-Family Policies Mothers Say Would Help After the Birth of a Child," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 12(1), pages 65-87, March.
  16. 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.
  17. Aydogan Ulker & Cahit Guven, 2011. "Determinants of Maternity Leave Duration in Australia: Evidence from the HILDA Survey," The Economic Record, The Economic Society of Australia, vol. 87(278), pages 399-413, 09.
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