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Parental leave reforms and the employment of new mothers: Quasi-experimental evidence from Japan

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  • Asai, Yukiko

Abstract

This study examines the changes in job continuity of new mothers following an increase in cash benefits provided during parental leave. The cash benefit was first introduced in 1995 and the replacement rate was 25%. The replacement rate was raised from 25% to 40% in 2001. During this period, the maximum duration of paid leave and that of job-protection remained unchanged, and therefore, I can isolate the effects of changes in the amount of cash benefit from those due to changes in duration of leave. By comparing the job continuity of women who gave birth to their child before the reform and those who did so after the reform, I find little evidence that the labour supply pattern of new mothers changed in response to the increased cash benefit.

Suggested Citation

  • Asai, Yukiko, 2015. "Parental leave reforms and the employment of new mothers: Quasi-experimental evidence from Japan," Labour Economics, Elsevier, vol. 36(C), pages 72-83.
    • Handle: RePEc:eee:labeco:v:36:y:2015:i:c:p:72-83
    DOI: 10.1016/j.labeco.2015.02.007
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    More about this item

    Keywords

    Parental leave; Cash benefit; Job continuity; Labour supply;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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