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Who benefits from a maternity leave extension? Evidence from Chile

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  • Rojas-Ampuero, Fernanda

Abstract

This paper examines the short- and medium-term effects of extending maternity leave on women’s labor market outcomes, exploiting a reform implemented in Chile in 2011 that increased maternity leave from 84 to 168 days. I combine administrative data on leave claims with employer–employee data to estimate the effect of longer leave on women’s employment and wages seven years after childbirth. The results show that, compared to ineligible workers, eligible women extend their maternity leave by 79 days and reduce their use of other sick leave claims. They are more likely to be formally employed for up to three years after giving birth, with no negative effects on earnings. The positive employment effects are driven by women with low labor market attachment prior to giving birth, who experience a reduction in separation rates and an increased likelihood of working under a permanent contract in the medium term. These results suggest that a longer leave incentivizes employment by helping mothers remain in the formal labor market.

Suggested Citation

  • Rojas-Ampuero, Fernanda, 2026. "Who benefits from a maternity leave extension? Evidence from Chile," Journal of Development Economics, Elsevier, vol. 182(C).
    • Handle: RePEc:eee:deveco:v:182:y:2026:i:c:s0304387826000465
    DOI: 10.1016/j.jdeveco.2026.103763
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