Female labour supply and parental leave benefits - the causal effect of paying higher transfers for a shorter period of time
We study the labour supply effects of a major change in child-subsidy policy in Germany in 2007 designed to increase both fertility and shorten birth-related employment interruptions. The reform involved a move from a means-tested maternity leave benefit system that paid a maximum of 300 Euro for up to 2 years to a benefit system that replaced two-thirds of pre-birth earnings for at most 1 year. As the reform took place very recently, we estimate the labour supply effect by using data drawn from the German Socio-Economic Panel (GSOEP) on the intention of women to return to the labour market. Our results show that the reform yields most of the intended effects: the fraction of mothers who plan to return to the labour market within a year after the interview increased by 14 percentage points.
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Volume (Year): 18 (2011)
Issue (Month): 1 ()
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- Spiess, C.Katharina & Wrohlich, Katharina, 2008. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 575-591.
- C. Spiess & Katharina Wrohlich, 2008. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 27(5), pages 575-591, October.
- 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.
- Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
- Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers on Multidisciplinary Panel Data Research 1, DIW Berlin, The German Socio-Economic Panel (SOEP).
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