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Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock

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  • Emma Tominey

Abstract

Female labor supply can insure households against shocks to paternal employment. The paper estimates whether the female labor supply response to a paternal employment shock differs by eligibility to maternity employment protection. We exploit time-state variation in the implementation of unpaid maternity leave through the Family and Medical Leave Act (FMLA) in the US which increased employment protection from 0 to 12 weeks. We find that mothers eligible for FMLA speed up their return to work in response to a paternal shock, with a conditional probability of being in work 53% higher than in households with no paternal shock. In contrast, there was a negligible insurance response for mothers with no employment protection.

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Bibliographic Info

Paper provided by Department of Economics, University of York in its series Discussion Papers with number 13/11.

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Date of creation: Jun 2013
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Handle: RePEc:yor:yorken:13/11

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Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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Fax: (0)1904 323759
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Web page: http://www.york.ac.uk/economics/
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Keywords: Female labor Supply; Insurance; Maternity Leave;

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