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Family policy and maternal employment in the Czech transition: a natural experiment

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  • Alzbeta Mullerova

    () (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

Czech family policies have gone through dramatic changes since the 1989 transition to a market economy, resulting into the highest employment gap between women with and without pre-school children in OECD. This paper focuses on the 1995 Czech Parental Benefit reform which extended the payment of universal parental benefits to four years instead of three without an equivalent extension of job-protected parental leave, leaving to mothers the choice of either guaranteed return to employment or an additional 12 months of benefits. The study relies on a difference-in-differences strategy to assess the net effect of this large-scale reform on mother's labour market participation. I find a strong negative impact on mothers' probability of return to work at the end of parental leave, with a heterogeneous size with respect to their educational attainment. I also find evidence of the persistence of this detrimental effect on mothers' employment beyond the short-term horizon targeted by the legislators.

Suggested Citation

  • Alzbeta Mullerova, 2017. "Family policy and maternal employment in the Czech transition: a natural experiment," Post-Print hal-01549839, HAL.
  • Handle: RePEc:hal:journl:hal-01549839
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01549839
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    References listed on IDEAS

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    1. Tomáš Sobotka & Anna Št’astná & Krystof Zeman & Dana Hamplová & Vladimíra Kantorová, 2008. "Czech Republic: A rapid transformation of fertility and family behaviour after the collapse of state socialism," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 19(14), pages 403-454, July.
    2. repec:adr:anecst:y:2010:i:99-100:p:10 is not listed on IDEAS
    3. Martin Guzi, 2014. "An Empirical Analysis of Welfare Dependence in the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(5), pages 407-431, November.
    4. Rafael Lalive & Analía Schlosser & Andreas Steinhauer & Josef Zweimüller, 2014. "Parental Leave and Mothers' Careers: The Relative Importance of Job Protection and Cash Benefits," Review of Economic Studies, Oxford University Press, vol. 81(1), pages 219-265.
    5. repec:tpr:restat:v:100:y:2018:i:4:p:691-703 is not listed on IDEAS
    6. Anna Lovasz & Agnes Szabo-Morvai, 2013. "Does Childcare Matter for Maternal Labor Supply? Pushing the limits of the Regression Discontinuity Framework," Budapest Working Papers on the Labour Market 1313, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    7. Christopher J. Ruhm, 1998. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 285-317.
    8. Alena Bicakova & Klara Kaliskova, 2016. "Career Breaks after Childbirth: The Impact of Family Leave Reforms in the Czech Republic," CERGE-EI Working Papers wp568, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    9. Uta Schönberg & Johannes Ludsteck, 2014. "Expansions in Maternity Leave Coverage and Mothers' Labor Market Outcomes after Childbirth," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 469-505.
    10. repec:adr:anecst:y:2010:i:99-100 is not listed on IDEAS
    11. Rafael Lalive & Josef Zweimüller, 2009. "How Does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 124(3), pages 1363-1402.
    12. Julie Moschion, 2010. "Reconciling Work and Family Life: The Effect of the French Paid Parental Leave," Annals of Economics and Statistics, GENES, issue 99-100, pages 217-246.
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    Cited by:

    1. Gerards, Ruud & Theunissen, Pomme, 2018. "Becoming a mompreneur: Parental leave policies and mothers' propensity for self-employment," ROA Research Memorandum 006, Maastricht University, Research Centre for Education and the Labour Market (ROA).

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