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Unintended consequences of maternity leave entitlements on female labor market outcomes in China

Author

Listed:
  • Liu, Hong
  • Li, Jiaying
  • Song, Hong
  • Zou, Xianqiang

Abstract

This study provides the first empirical evidence of the impact of maternity leave entitlements on labor market outcomes for women of childbearing age in urban China. We exploit a reform during which approximately two-thirds of the provinces in China extended their leave entitlements from 2014 to 2016 and employ a triple-difference strategy to deal with the identification. The results suggest unintended effects, as leave entitlement extensions led to a reduction in the likelihood of working, formal employment, and wage for women of childbearing age relative to their counterparts. We further establish that greater reliance on employer liability may be the main mechanism behind the unintended effects, highlighting the importance of payment schemes. This study provides novel evidence and mechanisms for the labor market effect of maternity leave in women of childbearing age and provides new insights for maternity leave related policy designs.

Suggested Citation

  • Liu, Hong & Li, Jiaying & Song, Hong & Zou, Xianqiang, 2024. "Unintended consequences of maternity leave entitlements on female labor market outcomes in China," Journal of Economic Behavior & Organization, Elsevier, vol. 228(C).
    • Handle: RePEc:eee:jeborg:v:228:y:2024:i:c:s0167268124003962
    DOI: 10.1016/j.jebo.2024.106782
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    More about this item

    Keywords

    Maternity leave policy; Female employment; Social insurance;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

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