IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v71y2018i1p143-173.html
   My bibliography  Save this article

Back to Work: Parental Benefits and Mothers’ Labor Market Outcomes in the Medium Run

Author

Listed:
  • Jochen Kluve
  • Sebastian Schmitz

Abstract

The authors estimate policy impacts of a generous parental benefit in Germany by using a natural experiment and German census data. They estimate policy effects for the short run (first two years after childbirth) as well as for the medium run (that is, three to five years after childbirth). Although the results confirm the evidence from previous studies for the short run, pronounced patterns emerge for the medium run. First, effects on mothers’ employment probability are positive, significant, and large, ranging up to 10%. These gains are driven primarily by increases in part-time employment and working hours but also by full-time employment for high-income mothers. Moreover, mothers return to their previous employers at significantly higher rates, and employers reward this by raising job quality. The overall positive and sizeable impacts of the reform are centered on mothers from the medium and high terciles of the income distribution; low-income mothers do not benefit.

Suggested Citation

  • Jochen Kluve & Sebastian Schmitz, 2018. "Back to Work: Parental Benefits and Mothers’ Labor Market Outcomes in the Medium Run," ILR Review, Cornell University, ILR School, vol. 71(1), pages 143-173, January.
  • Handle: RePEc:sae:ilrrev:v:71:y:2018:i:1:p:143-173
    as

    Download full text from publisher

    File URL: http://ilr.sagepub.com/content/71/1/143.abstract
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Jochen Kluve & Marcus Tamm, 2013. "Parental leave regulations, mothers’ labor force attachment and fathers’ childcare involvement: evidence from a natural experiment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 983-1005, July.
    3. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    4. Tamm, Marcus, 2013. "The Impact of a Large Parental Leave Benefit Reform on the Timing of Birth around the Day of Implementation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 585-601.
    5. Michael Neugart & Henry Ohlsson, 2013. "Economic incentives and the timing of births: evidence from the German parental benefit reform of 2007," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(1), pages 87-108, January.
    6. Wen-Jui Han & Christopher Ruhm & Jane Waldfogel, 2009. "Parental leave policies and parents' employment and leave-taking," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(1), pages 29-54.
    7. Gordon B. Dahl & Katrine V. Løken & Magne Mogstad & Kari Vea Salvanes, 2016. "What Is the Case for Paid Maternity Leave?," The Review of Economics and Statistics, MIT Press, vol. 98(4), pages 655-670, October.
    8. Annette Bergemann & Regina Riphahn, 2011. "Female labour supply and parental leave benefits - the causal effect of paying higher transfers for a shorter period of time," Applied Economics Letters, Taylor & Francis Journals, vol. 18(1), pages 17-20.
    9. Maya Rossin‐Slater & Christopher J. Ruhm & Jane Waldfogel, 2013. "The Effects of California's Paid Family Leave Program on Mothers’ Leave‐Taking and Subsequent Labor Market Outcomes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(2), pages 224-245, March.
    10. 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.
    11. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    12. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    13. Ekberg, John & Eriksson, Rickard & Friebel, Guido, 2013. "Parental leave — A policy evaluation of the Swedish “Daddy-Month” reform," Journal of Public Economics, Elsevier, vol. 97(C), pages 131-143.
    14. Baum, Charles II, 2003. "The effect of state maternity leave legislation and the 1993 Family and Medical Leave Act on employment and wages," Labour Economics, Elsevier, vol. 10(5), pages 573-596, October.
    15. Jane Waldfogel, 1999. "The impact of the family and medical leave act," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(2), pages 281-302.
    16. Uta Schönberg & Johannes Ludsteck, 2014. "Expansions in Maternity Leave Coverage and Mothers' Labor Market Outcomes after Childbirth," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 469-505.
    17. Chiara Pronzato, 2009. "Return to work after childbirth: does parental leave matter in Europe?," Review of Economics of the Household, Springer, vol. 7(4), pages 341-360, December.
    18. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-209, January.
    19. Rafael Lalive & Josef Zweimüller, 2009. "How Does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 124(3), pages 1363-1402.
    20. Michael Baker & Kevin Milligan, 2008. "How Does Job-Protected Maternity Leave Affect Mothers' Employment?," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 655-691, October.
    21. Marcus Tamm, 2013. "The Impact of a Large Parental Leave Benefit Reform on the Timing of Birth around the Day of Implementation-super-," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(4), pages 585-601, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marcus Tamm, 2018. "Fathers’ Parental Leave-Taking, Childcare Involvement and Mothers’ Labor Market Participation," SOEPpapers on Multidisciplinary Panel Data Research 1006, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Mari, Gabriele & Cutuli, Giorgio, 2018. "Do parental leaves make the motherhood wage penalty worse? Assessing two decades of German reforms," SocArXiv f2nrc, Center for Open Science.
    3. Frodermann, Corinna & Wrohlich, Katharina & Zucco, Aline, 2020. "Parental Leave Reform and Long-Run Earnings of Mothers," IZA Discussion Papers 12935, Institute of Labor Economics (IZA).
    4. Welteke, Clara & Wrohlich, Katharina, 2019. "Peer effects in parental leave decisions," Labour Economics, Elsevier, vol. 57(C), pages 146-163.
    5. Jessen, Jonas & Schmitz, Sophia & Waights, Sevrin, 2020. "Understanding Day Care Enrolment Gaps," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics.
    6. Anna Raute, 2018. "Can financial incentives reduce the baby gap? Evidence from a reform in maternity leave benefits," Working Papers 871, Queen Mary University of London, School of Economics and Finance.
    7. Cygan-Rehm, Kamila & Kuehnle, Daniel & Riphahn, Regina T., 2018. "Paid parental leave and families’ living arrangements," Labour Economics, Elsevier, vol. 53(C), pages 182-197.
    8. Zimmert, Franziska, 2019. "Early child care and maternal employment: empirical evidence from Germany," IAB-Discussion Paper 201902, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Gabriele Mari & Giorgio Cutuli, 2019. "Do Parental Leaves Make the Motherhood Wage Penalty Worse? Assessing Two Decades of German Reforms," SOEPpapers on Multidisciplinary Panel Data Research 1025, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Tamm, Marcus, 2019. "Fathers’ parental leave-taking, childcare involvement and labor market participation," Labour Economics, Elsevier, vol. 59(C), pages 184-197.
    11. Raute, Anna, 2019. "Can financial incentives reduce the baby gap? Evidence from a reform in maternity leave benefits," Journal of Public Economics, Elsevier, vol. 169(C), pages 203-222.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schmitz, Sebastian & Kluve, Jochen, 2014. "Parental Benefits and Mothers Labor Market Outcomes in the Medium Run," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100567, Verein für Socialpolitik / German Economic Association.
    2. repec:zbw:rwirep:0481 is not listed on IDEAS
    3. Sebastian Schmitz & Jochen Kluve, 2014. "Social Norms and Mothers' Labor Market Attachment: The Medium-run Effects of Parental Benefits," Working Papers 2014001, Berlin Doctoral Program in Economics and Management Science (BDPEMS).
    4. Jochen Kluve & Sebastian Schmitz, 2014. "Social Norms and Mothers’ Labor Market Attachment – The Medium-run Effects of Parental Benefits," Ruhr Economic Papers 0481, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Kluve, Jochen & Schmitz, Sebastian, 2014. "Social Norms and Mothers' Labor Market Attachment – The Medium-run Effects of Parental Benefits," Ruhr Economic Papers 481, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Kluve, Jochen & Schmitz, Sebastian, 2014. "Social Norms and Mothers' Labor Market Attachment: The Medium-Run Effects of Parental Benefits," IZA Discussion Papers 8115, Institute of Labor Economics (IZA).
    7. Gerards, Ruud & Theunissen, Pomme, 2018. "Becoming a mompreneur: Parental leave policies and mothers' propensity for self-employment," Research Memorandum 025, Maastricht University, Graduate School of Business and Economics (GSBE).
    8. 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.
    9. Katrin Huber, 2019. "Changes in parental leave and young children’s non-cognitive skills," Review of Economics of the Household, Springer, vol. 17(1), pages 89-119, March.
    10. Bergemann, Annette & Riphahn, Regina T., 2015. "Maternal Employment Effects of Paid Parental Leave," IZA Discussion Papers 9073, Institute of Labor Economics (IZA).
    11. Ginja, Rita & Jans, Jenny & Karimi, Arizo, 2017. "Parental Investments in Early Life and Child Outcomes. Evidence from Swedish Parental Leave Rules," Working Papers in Economics 17/17, University of Bergen, Department of Economics.
    12. 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.
    13. Ginja, Rita & Karimi, Arizo & Xiao, Pengpeng, 2020. "Employer Responses to Family Leave Programs," IZA Discussion Papers 13833, Institute of Labor Economics (IZA).
    14. Maya Rossin-Slater, 2017. "Maternity and Family Leave Policy," NBER Working Papers 23069, National Bureau of Economic Research, Inc.
    15. Guyonne Kalb, 2018. "Paid Parental Leave and Female Labour Supply: AÂ Review," The Economic Record, The Economic Society of Australia, vol. 94(304), pages 80-100, March.
    16. Zimmert, Franziska & Zimmert, Michael, 2020. "Paid parental leave and maternal reemployment: Do part-time subsidies help or harm?," Economics Working Paper Series 2002, University of St. Gallen, School of Economics and Political Science.
    17. Rossin-Slater, Maya, 2017. "Maternity and Family Leave Policy," IZA Discussion Papers 10500, Institute of Labor Economics (IZA).
    18. 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.
    19. Wendy A. Stock & Myron Inglis, 2021. "The longer‐term labor market impacts of paid parental leave," Growth and Change, Wiley Blackwell, vol. 52(2), pages 838-884, June.
    20. Dominic Richardson & UNICEF Office of Research - Innocenti, 2018. "Key Findings on Families, Family Policy and the Sustainable Development Goals: Synthesis Report," Papers inorer948, Innocenti Research Report.
    21. Lalive, Rafael, 2021. "Mothers at Work: How Mandating Paid Maternity Leave Affects Employment, Earnings and Fertility," CEPR Discussion Papers 16418, C.E.P.R. Discussion Papers.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:71:y:2018:i:1:p:143-173. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.ilr.cornell.edu .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.