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Labour Supply Responses to Paid Parental Leave

Author

Listed:
  • Karimi, Arizo

    (Uppsala Center for Labor Studies)

  • Lindahl, Erica

    (Institute for evaluation of labour market and education policy)

  • Skogman Thoursie, Peter

    (Department of Economics, Stockholm University)

Abstract

Women account for the majority of parental leave take-up, which is likely one of the major reasons for the gender gap in income and wages. Consequently, many countries exert effort to promote a more gender equal division of parental leave. Indeed, the last decades have seen an increase in fathers’ take-up of parental leave benefits, but the gender earnings gap has remained fairly constant. In this paper we re-evaluate the labour supply responses of both mothers and fathers to three major reforms in the Swedish parental leave system, recognizing that take up of paid parental leave might not fully reflect actual time off from work in a system where job-protection exceeds paid leave. We find that both mothers and fathers decreased their labour supply to the same extent as a response to an increase in paid parental leave without gender restrictions. In contrast, we find no support for any changes in fathers’ labour supply due to reforms introducing gender quotas in paid leave.

Suggested Citation

  • 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.
  • Handle: RePEc:hhs:uulswp:2012_020
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    Cited by:

    1. Rita Ginja & Jenny Jans & Arizo Karimi, 2017. "Parental Investments in Early Life and Child Outcomes: Evidence from Swedish Parental Leave Rules," Working Papers 2017-085, Human Capital and Economic Opportunity Working Group.
    2. Moberg, Ylva, 2019. "Speedy responses: Effects of higher benefits on take-up and division of parental leave," Working Paper Series 2019:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Norén, Anna, 2015. "Childcare and the division of parental leave," Working Paper Series 2015:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Ginja, Rita & Karimi, Arizo & Xiao, Pengpeng, 2020. "Employer Responses to Family Leave Programs," IZA Discussion Papers 13833, Institute of Labor Economics (IZA).
    5. Moberg, Ylva, 2018. "Speedy Responses: Effects of Higher Benefits on Take-up and Division of Parental Leave," Working Paper Series 2018:14, Uppsala University, Department of Economics.
    6. Ann-Zofie Duvander & Trude Lappegard & Mats Johansson, 2020. "Impact of a Reform Towards Shared Parental Leave on Continued Fertility in Norway and Sweden," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(6), pages 1205-1229, December.
    7. Rita Ginja & Jenny Jans & Arizo Karimi, 2020. "Parental Leave Benefits, Household Labor Supply, and Children’s Long-Run Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 38(1), pages 261-320.

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    More about this item

    Keywords

    natural experiment; parental leave; labour supply;
    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
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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