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Maternal employment effects of paid parental leave

Author

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  • Bergemann, Annette

    (University of Bristol)

  • Riphahn, Regina T.

    (Friedrich-Alexander University)

Abstract

We study the short, medium, and long run employment effects of a substantial change in the parental leave benefit program in Germany. In 2007, a means-tested parental leave transfer program, which had paid benefits for up to two years, was replaced by an earnings related transfer, which paid benefits for up to one year. The reform generated winners and losers with heterogeneous response incentives. We find that the reform sped up the labor market return of all mothers after benefit expiration. Likely pathways for this substantial reform effect are changes in social norms and mothers' preferences for economic independence

Suggested Citation

  • Bergemann, Annette & Riphahn, Regina T., 2020. "Maternal employment effects of paid parental leave," Working Paper Series 2020:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2020_006
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    More about this item

    Keywords

    female labor supply; maternal labor supply; parental leave; parental leave benefit; child-rearing benefit;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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