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Career Interruptions due to Parental Leave - A Comparative Study of Denmark and Sweden

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  • Pylkkänen, Elina

    () (University of Göteborg and the Ministry of Finance,)

  • Smith, Nina

    () (Department of Economics, Aarhus School of Business)

Abstract

Parental leave mandates are associated with high female employment rates, but with reductions in relative female wages if leave is of extended duration. We analyze the impact of family policies (parental leave and childcare prices) of Denmark and Sweden on women’s career breaks due to childbirth. These countries are culturally similar and share the same type of welfare state ideology, but differ remarkably in pursued family policies. Our analysis takes advantage of the availability of comparable longitudinal data and allows us to estimate parallel models across the two countries. The impact of family policies and economic incentives on the probability of returning to the labor market is estimated using a duration model approach. Our results show that economic incentives affect the behavior of mothers in both countries. However, the parental leave mandates as such are very important determinants for the observed behavior. Based on policy simulations we find that if fathers were given more parental leave, it would promote the labor supply of women.

Suggested Citation

  • Pylkkänen, Elina & Smith, Nina, 2004. "Career Interruptions due to Parental Leave - A Comparative Study of Denmark and Sweden," Working Papers 04-1, University of Aarhus, Aarhus School of Business, Department of Economics.
  • Handle: RePEc:hhs:aareco:2004_001
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    References listed on IDEAS

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    1. Datta Gupta, Nabanita & Smith, Nina, 2002. "Children and Career Interruptions: The Family Gap in Denmark," Economica, London School of Economics and Political Science, vol. 69(276), pages 609-629, November.
    2. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 76-108, Part II, .
    3. 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.
    4. Siv S. Gustafsson & Shirley Dex & Cécile M. M. P. Wetzels & Jan Dirk Vlasblom, 1996. "Women`s labor force transitions in connection with childbirth: A panel data comparison between Germany, Sweden and Great Britain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(3), pages 223-246.
    5. Jane Waldfogel, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-156, Winter.
    6. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
    7. Jan Ondrich & C. Spiess & Qing Yang & Gert Wagner, 2003. "The Liberalization of Maternity Leave Policy and the Return to Work after Childbirth in Germany," Review of Economics of the Household, Springer, vol. 1(1), pages 77-110, January.
    8. Klerman, Jacob Alex & Leibowitz, Arleen, 1990. "Child Care and Women's Return to Work after Childbirth," American Economic Review, American Economic Association, vol. 80(2), pages 284-288, May.
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    Cited by:

    1. Julia Bredtmann & Jochen Kluve & Sandra Schaffner, 2013. "Mothers' Transitions into the Labor Market under Two Political Systems: Comparing East and West Germany before Reunification," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 133(3), pages 375-408.
    2. Marianne Simonsen, 2005. "Availability and Price of High Quality Day Care and Female Employment," Economics Working Papers 2005-08, Department of Economics and Business Economics, Aarhus University.
    3. Blome, Agnes, 2011. "Work/care policies in European welfare states: Continuing variety or change towards a common model?," Discussion Papers, Research Professorship Demographic Development, Social Change, and Social Capital SP I 2011-401, Social Science Research Center Berlin (WZB).
    4. Joanna Osiñska, 2013. "Postawy wzglêdem euro i ich determinanty– przegl¹d badañ i literatury przedmiotu," Working Papers 70, Institute of Statistics and Demography, Warsaw School of Economics.
    5. Spiess, C.Katharina & Wrohlich, Katharina, 2008. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 575-591.
    6. Magdalena M. Muszynska, 2004. "Employment after childbearing: a comparative study of Italy and Norway," MPIDR Working Papers WP-2004-030, Max Planck Institute for Demographic Research, Rostock, Germany.
    7. Hélène Périvier, 2004. "Emploi des mères et garde des jeunes enfants en Europe," Revue de l'OFCE, Presses de Sciences-Po, vol. 90(3), pages 225-258.
    8. Hotchkiss, Julie L. & Pitts, M. Melinda & Walker, Mary Beth, 2011. "To work or not to work: the economics of a mother's dilemma," FRB Atlanta Working Paper 2011-02, Federal Reserve Bank of Atlanta.
    9. Karimi, Arizo & Lindahl, Erica & Skogman Thoursie, Peter, 2012. "Labour Supply Responses to Paid Parental Leave," Working Paper Series, Center for Labor Studies 2012:20, Uppsala University, Department of Economics.
    10. Jérôme De Henau & Leila Maron & Danièle Meulders & Sile Padraigin O'Dorchai, 2007. "Travail et maternité en Europe: conditions de travail et politiques publiques," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 50(1), pages 63-88.
    11. Alessandra Casarico & Paola Profeta & Chiara Pronzato, 2012. "On the local labor market determinants of female university enrolment in European regions," Carlo Alberto Notebooks 278, Collegio Carlo Alberto.
    12. Nielsen, Helena Skyt, 2009. "Causes and Consequences of a Father's Child Leave: Evidence from a Reform of Leave Schemes," IZA Discussion Papers 4267, Institute for the Study of Labor (IZA).
    13. Anna Matysiak & Dorota Węziak-Białowolska, 2016. "Country-Specific Conditions for Work and Family Reconciliation: An Attempt at Quantification," European Journal of Population, Springer;European Association for Population Studies, vol. 32(4), pages 475-510, October.
    14. C. Katharina Spieß, 2011. "Vereinbarkeit von Familie und Beruf – wie wirksam sind deutsche „Care Policies“?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 4-27, May.
    15. Marit Rønsen & Ragni Hege Kitterød, 2012. "Entry into work following childbirth among mothers in Norway. Recent trends and variation," Discussion Papers 702, Statistics Norway, Research Department.
    16. Spiess, C. Katharina & Wrohlich, Katharina, 2006. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Scandinavian Model," IZA Discussion Papers 2372, Institute for the Study of Labor (IZA).
    17. Julie Hotchkiss & M. Pitts & Mary Walker, 2011. "Labor force exit decisions of new mothers," Review of Economics of the Household, Springer, vol. 9(3), pages 397-414, September.
    18. repec:zbw:rwirep:0149 is not listed on IDEAS
    19. repec:bla:ecorec:v:94:y:2018:i:304:p:80-100 is not listed on IDEAS
    20. Geyer, Johannes & Haan, Peter & Spieß, C. Katharina & Wrohlich, Katharina, 2013. "Das Elterngeld und seine Wirkungen auf das Haushaltseinkommen junger Familien und die Erwerbstätigkeit von Müttern," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 193-211.
    21. Julie L. Hotchkiss & M. Melinda Pitts & Mary Beth Walker, 2010. "Assessing the impact of education and marriage on labor market exit decisions of women," FRB Atlanta Working Paper 2010-02, Federal Reserve Bank of Atlanta.
    22. Hong, Ying & Corman, Diana, 2005. "Women´s Return to Work after First Birth in Sweden during 1980-2000," Arbetsrapport 2005:19, Institute for Futures Studies.
    23. Kristin Kleinjans, 2008. "Do Gender Differences in Preferences for Competition Matter for Occupational Expectations?," Economics Working Papers 2008-09, Department of Economics and Business Economics, Aarhus University.

    More about this item

    Keywords

    Maternal Leave; Parental Leave; Childcare; Family Policy; Mothers’ Labor Supply;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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