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The Response of Firms to Maternity Leave and Sickness Absence

Author

Listed:
  • Ian M. Schmutte
  • Meghan M. Skira

Abstract

We study how employers respond to worker absences arising from maternity and non-work-related sickness leave. Using administrative data on nearly one million spells of leave in Brazil, we identify the short-run effects of a leave spell starting on occupational employment, hiring, and separations. Employers respond immediately by increasing hiring, but the increase is substantially less than one-for-one replacement. We find modest heterogeneity across worker and job characteristics and market conditions, but the largest differences in employer responses arise across maternity and sickness leave. Overall, our results imply that hiring replacement labor is costly, and firms manage absences through other channels.

Suggested Citation

  • Ian M. Schmutte & Meghan M. Skira, 2025. "The Response of Firms to Maternity Leave and Sickness Absence," Journal of Human Resources, University of Wisconsin Press, vol. 60(6), pages 2125-2167.
    • Handle: RePEc:uwp:jhriss:v:60:y:2025:i:6:p:2125-2167
    Note: DOI: https://doi.org/10.3368/jhr.0522-12352R2
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    Citations

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    Cited by:

    1. is not listed on IDEAS
    2. Irene Ferrari & Jan Kabátek & Todd Morris, 2023. "Longer careers: A barrier to hiring and coworker advancement?," Cahiers de recherche / Working Papers 14, Institut sur la retraite et l'épargne / Retirement and Savings Institute.
    3. Rettl, Daniel A. & Schandlbauer, Alexander & Trandafir, Mircea, 2022. "Employee Health and Firm Performance," IZA Discussion Papers 15147, IZA Network @ LISER.
    4. Hoey, Sam & Peeters, Thomas & van Ours, Jan C., 2023. "The impact of absent co-workers on productivity in teams," Labour Economics, Elsevier, vol. 83(C).
    5. Canaan, Serena & Lassen, Anne Sophie & Rosenbaum, Philip & Steingrimsdottir, Herdis, 2022. "Maternity Leave and Paternity Leave: Evidence on the Economic Impact of Legislative Changes in High Income Countries," IZA Discussion Papers 15129, IZA Network @ LISER.
    6. Bamieh, Omar & Ziegler, Lennart, 2023. "Gender-age differences in hiring rates and prospective wages—Evidence from job referrals to unemployed workers," Labour Economics, Elsevier, vol. 83(C).
    7. Huebener, Mathias & Jessen, Jonas & Kuehnle, Daniel & Oberfichtner, Michael, 2025. "Parental Leave, Worker Substitutability and Firms’ Employment," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 135(669), pages 1467-1495.
    8. Bennedsen, Morten & Larsen, Birthe & Schmutte, Ian M. & Scur, Daniela, 2023. "The effect of preserving job matches during a crisis," Labour Economics, Elsevier, vol. 84(C).

    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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