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Economic consequences of family policies

Author

Listed:
  • Claudia Olivetti
  • Barbara Petrongolo

Abstract

There is no compelling evidence that extended parental leave rights have a positive impact on female employment, according to research by Claudia Olivetti and Barbara Petrongolo, which analyses the labour market effects of family-oriented policies - such as parental leave, childcare support and flexible work arrangements - in 30 OECD countries over 45 years. Their study finds that job-protected parental leave entitlements up to 18 months are associated with better female employment and wage outcomes. But longer and more generously paid parental leave entitlements may be detrimental to female employment, especially for the less skilled. Making it easier to be a working mother, via subsidised childcare, leads to better labour market outcomes than extending parental leave.

Suggested Citation

  • Claudia Olivetti & Barbara Petrongolo, 2018. "Economic consequences of family policies," CentrePiece - The magazine for economic performance 533, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepcnp:533
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    File URL: https://cep.lse.ac.uk/pubs/download/cp533.pdf
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    Cited by:

    1. Elizabeth L. Doran & Ann P. Bartel & Jane Waldfogel, 2018. "Gender in the Labor Market: The Role of Equal Opportunity and Family-Friendly Policies," NBER Working Papers 25378, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    parental leave; childcare; family policies; gender gaps;
    All these keywords.

    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
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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