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The effect of own and spousal parental leave on earnings

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  • Johansson, Elly-Ann

    () (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

This paper investigates the effect of parental leave – both own and spousal – on subsequent earnings using different sources of variation. Using fixed-effect models, and in line with previous results, parental leave is found to decrease each parent’s future earnings. Also spousal leave is important, but only for mothers. In fact, each month the father stays on parental leave has a larger positive effect on maternal earnings than a similar reduction in the mother’s own leave. Using two reforms of the parental leave system as exogenous sources of variation yields only imprecisely estimated effects, even though the reforms had a strong effect on parental leave usage. However, the point estimates tentatively suggest effects in the same range or larger than the fixed-effects model found.

Suggested Citation

  • Johansson, Elly-Ann, 2010. "The effect of own and spousal parental leave on earnings," Working Paper Series 2010:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2010_004
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    Cited by:

    1. Boye, Katarina, 2015. "Care more, earn less? The association between care leave for sick children and wage among Swedish parents," Working Paper Series 2015:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Avdic, Daniel & Karimi, Arizo, 2016. "Modern family? Paternity leave and marital stability," Working Paper Series 2016:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Anna Oksuzyan & Angela Carollo & Sven Drefahl & Carlo G. Camarda & Kaare Christensen & Alyson A. van Raalte, 2017. "Does the age difference between partners influence the career achievements of women?," MPIDR Working Papers WP-2017-008, Max Planck Institute for Demographic Research, Rostock, Germany.
    4. Pia S. Schober & Gundula Zoch, 2015. "Change in the Gender Division of Domestic Work after Mummy or Daddy Took Leave: An Examination of Alternative Explanations," SOEPpapers on Multidisciplinary Panel Data Research 803, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    Keywords

    Parental leave; gender equality; earnings;

    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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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