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How Can Paid Maternity Leave Boost Female Entrepreneurship?

Author

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  • Sébastien Fontenay

Abstract

This work reveals that providing mothers with a higher maternity leave allowance raises their probability of becoming self-employed after childbirth. Using administrative data from Belgium from 2002–2015 and a regression kink design, I estimate that a 900-euro increase in allowance raises the probability of becoming self-employed by six percentage points. Regarding self-employed mothers’ incentives, I find evidence that the allowance might lift financial constraints for those residing in provinces with poor access to banks. I also reveal a positive effect on higher-order births and argue that self-employed mothers might seek flexible work arrangements when they worked in less family-friendly sectors.

Suggested Citation

  • Sébastien Fontenay, 2026. "How Can Paid Maternity Leave Boost Female Entrepreneurship?," Journal of Human Resources, University of Wisconsin Press, vol. 61(3), pages 923-971.
    • Handle: RePEc:uwp:jhriss:v:61:y:2026:i:3:p:923-971
    Note: DOI: https://doi.org/10.3368/jhr.0123-12727R2
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    File URL: http://jhr.uwpress.org/cgi/reprint/61/3/923
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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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