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The effects of family policy on maternal labor supply: Combining evidence from a structural model and a quasi-experimental approach

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  • Geyer, Johannes
  • Haan, Peter
  • Wrohlich, Katharina

Abstract

Parental leave and subsidized child care are prominent examples of family policies supporting the reconciliation of family life and labor market careers for mothers. In this paper, we combine different empirical strategies to evaluate the employment effects of these policies for mothers with young children. In particular we estimate a structural labor supply model and exploit quasi-experimental variation from a parental leave reform in Germany. Our findings suggest that a combination of parental leave benefits and subsidized child care leads to sizable employment effects of mothers.

Suggested Citation

  • Geyer, Johannes & Haan, Peter & Wrohlich, Katharina, 2015. "The effects of family policy on maternal labor supply: Combining evidence from a structural model and a quasi-experimental approach," Labour Economics, Elsevier, vol. 36(C), pages 84-98.
  • Handle: RePEc:eee:labeco:v:36:y:2015:i:c:p:84-98
    DOI: 10.1016/j.labeco.2015.07.001
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    Cited by:

    1. Bicakova, Alena & Kaliskova, Klara, 2016. "Career Breaks after Childbirth: The Impact of Family Leave Reforms in the Czech Republic," IZA Discussion Papers 10149, Institute for the Study of Labor (IZA).
    2. repec:eee:eecrev:v:97:y:2017:i:c:p:1-25 is not listed on IDEAS
    3. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation," Working Papers 811, Queen Mary University of London, School of Economics and Finance.
    4. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 205-230, Winter.
    5. BARGAIN Olivier & DOORLEY Karina, 2016. "The Effect of Social Benefits on Youth Employment: Combining RD and a Behavioral Model," LISER Working Paper Series 2016-12, LISER.
    6. Clara Welteke & Katharina Wrohlich, 2016. "Peer Effects in Parental Leave Decisions," Discussion Papers of DIW Berlin 1600, DIW Berlin, German Institute for Economic Research.
    7. Kai-Uwe Müller & Katharina Wrohlich, 2018. "Does Subsidized Care for Toddlers Increase Maternal Labor Supply?: Evidence from a Large-Scale Expansion of Early Childcare," Discussion Papers of DIW Berlin 1747, DIW Berlin, German Institute for Economic Research.
    8. Fossen, Frank M. & Glocker, Daniela, 2017. "Stated and revealed heterogeneous risk preferences in educational choice," European Economic Review, Elsevier, vol. 97(C), pages 1-25.
    9. repec:bla:ecorec:v:94:y:2018:i:304:p:80-100 is not listed on IDEAS
    10. Felfe, Christina & Lechner, Michael & Thiemann, Petra, 2016. "After-school care and parents' labor supply," Labour Economics, Elsevier, vol. 42(C), pages 64-75.
    11. repec:sae:ilrrev:v:71:y:2018:i:1:p:143-173 is not listed on IDEAS
    12. Thor O. Thoresen & Trine Engh Vattø, 2017. "An Up-to-Date Joint Labor Supply and Child Care Choice Model," CESifo Working Paper Series 6641, CESifo Group Munich.
    13. Kai-Uwe Müller & Michael Neumann & Katharina Wrohlich, 2016. "The Family Working Time Model - Toward More Gender Equality in Work and Care," Discussion Papers of DIW Berlin 1603, DIW Berlin, German Institute for Economic Research.
    14. Mathias Huebener & Daniel Kuehnle & C. Katharina Spiess, 2017. "Paid Parental Leave and Child Development: Evidence from the 2007 German Parental Benefit Reform and Administrative Data," Discussion Papers of DIW Berlin 1651, DIW Berlin, German Institute for Economic Research.
    15. Unterhofer, Ulrike & Wrohlich, Katharina, 2017. "Fathers, Parental Leave and Gender Norms," IZA Discussion Papers 10712, Institute for the Study of Labor (IZA).
    16. Bergemann, Annette & Riphahn, Regina T., 2015. "Maternal Employment Effects of Paid Parental Leave," IZA Discussion Papers 9073, Institute for the Study of Labor (IZA).
    17. Ulrike Unterhofer & Katharina Wrohlich, 2017. "Fathers, Parental Leave and Gender Norms," Discussion Papers of DIW Berlin 1657, DIW Berlin, German Institute for Economic Research.
    18. Gauthier Lanot, 2017. "Maximum likelihood and economic modeling," IZA World of Labor, Institute for the Study of Labor (IZA), pages 326-326, January.

    More about this item

    Keywords

    Labor supply; Parental leave benefits; Childcare costs; Structural model; Natural experiment; Quasi-experimental approach;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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