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Unintended consequences of maternity leave legislation: The case of Colombia

Author

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  • Uribe, Ana Maria Tribin
  • Vargas, Carmiña O.
  • Bustamante, Natalia Ramírez

Abstract

We estimate the impact on female labor outcomes of the extension in maternity leave period from 12 to 14 weeks, an amendment to the Colombian labor law in 2011. To identify this impact, we compare labor market outcomes of different groups of individuals with women of child-bearing age. First we compared two groups of women with different fertility rates (low elasticity of substitution), finding that, as result of the extension, women in the high-fertility age group experience an increase in inactivity, informality, and self-employment. When comparing high-fertility age women with men in the same age group (high elasticity of substitution), we find that the extension increases the probability of unemployment, informality and self-employment and decreases wages of women compared with men.

Suggested Citation

  • Uribe, Ana Maria Tribin & Vargas, Carmiña O. & Bustamante, Natalia Ramírez, 2019. "Unintended consequences of maternity leave legislation: The case of Colombia," World Development, Elsevier, vol. 122(C), pages 218-232.
  • Handle: RePEc:eee:wdevel:v:122:y:2019:i:c:p:218-232
    DOI: 10.1016/j.worlddev.2019.05.007
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    2. Karen García-Rojas & Paula Herrera-Idárraga & Leonardo Fabio Morales & Natalia Ramírez-Bustamante & Ana María Tribín-Uribe, 2020. "(She)cession: The Colombian female staircase fall," Borradores de Economia 1140, Banco de la Republica de Colombia.

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    More about this item

    Keywords

    Maternity leave; Female labor market; Labor regulation;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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