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Peer effects in parental leave decisions

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  • Welteke, Clara
  • Wrohlich, Katharina

Abstract

We analyze whether mothers’ parental leave decisions depend on their coworkers’ decisions. The identification of peer effects bears various challenges due to correlated characteristics within social groups. We therefore exploit quasi-random variation in the costs of parental leave induced by a policy reform in Germany. The reform encourages mothers to remain at home during the first year following childbirth. Administrative linked employer-employee data enable us to assign a peer group to individuals who work in the same establishment and occupation. Our results suggest that parental leave decisions are significantly influenced by coworkers’ decisions.

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  • Welteke, Clara & Wrohlich, Katharina, 2019. "Peer effects in parental leave decisions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 57, pages 146-163.
    • Handle: RePEc:zbw:espost:233825
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    Cited by:

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    2. Corinna Frodermann & Katharina Wrohlich & Aline Zucco, 2020. "Parental Leave Reform and Long-Run Earnings of Mothers," Discussion Papers of DIW Berlin 1847, DIW Berlin, German Institute for Economic Research.
    3. Huebener, Mathias & Kuehnle, Daniel & Spiess, C. Katharina, 2019. "Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data," Labour Economics, Elsevier, vol. 61(C).
    4. 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.
    5. 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.
    6. Jessen, Jonas, 2022. "Culture, children and couple gender inequality," European Economic Review, Elsevier, vol. 150(C).
    7. Paule-Paludkiewicz, Hannah, 2024. "Does the right to work part-time affect mothers' labor market outcomes?," Discussion Papers 12/2024, Deutsche Bundesbank.
    8. Davide Dottori & Francesca Modena & Giulia Martina Tanzi, 2023. "Measuring peer effects in parental leaves: evidence from a reform," Temi di discussione (Economic working papers) 1399, Bank of Italy, Economic Research and International Relations Area.
    9. Chesney, Alexander J., 2022. "Should I get a master’s degree?," Economics of Education Review, Elsevier, vol. 91(C).
    10. 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.
    11. Wrohlich, Katharina & Zucco, Aline, 2023. "15 Jahre Elterngeld: Auswirkungen und Reformoptionen," Working Paper Forschungsförderung 281, Hans-Böckler-Stiftung, Düsseldorf.
    12. Ulrike Unterhofer & Katharina Wrohlich, 2017. "Fathers, Parental Leave and Gender Norms," Discussion Papers of DIW Berlin 1657, DIW Berlin, German Institute for Economic Research.
    13. Paule-Paludkiewicz, Hannah, 2020. "Does the Right to Work Part-Time Affect Mothers' Labor Market Outcomes?," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224556, Verein für Socialpolitik / German Economic Association.
    14. Averkamp, Dorothée, 2024. "The Gender Wage Gap, Labor-Market Experience, and Family Choices: Lessons from East Germany?," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302347, Verein für Socialpolitik / German Economic Association.
    15. Wrohlich, Katharina & Unterhofer, Ulrike, 2017. "External Effects of 'Daddy Months': How Fathers' Parental Leave Changes Social Norms," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168297, Verein für Socialpolitik / German Economic Association.
    16. Frodermann, Corinna & Wrohlich, Katharina & Zucco, Aline, 2023. "Parental Leave Policy and Long-run Earnings of Mothers," Labour Economics, Elsevier, vol. 80(C).
    17. Magnus Carlsson & Abdulaziz Abrar Reshid, 2022. "Co‐worker peer effects on parental leave take‐up," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(4), pages 930-957, October.
    18. Janna Bergsvik & Agnes Fauske & Rannveig K. Hart, 2020. "Effects of policy on fertility. A systematic review of (quasi)experiments," Discussion Papers 922, Statistics Norway, Research Department.
    19. 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.

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    More about this item

    Keywords

    Peer effects; Social interaction; Labor supply; Family policy;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

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