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The Long and Short of It: Maternity Leave Coverage and Women’s Labor Market Outcomes

Author

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  • Hashimoto, Masanori

    (Ohio State University)

  • Percy, Rick

    (Capital University)

  • Schoellner, Teresa

    (Ohio State University)

  • Weinberg, Bruce A.

    (Ohio State University)

Abstract

We investigate the effects of maternity leave coverage on women’s post-birth wages, job tenure, and labor market attachment. We pay particular attention to unobservable characteristics that are correlated with maternity leave coverage and that affect labor market outcomes. We use a control sample, as well as a range of control variables, to address unobserved heterogeneity. We find evidence of substantial selection based on unobserved heterogeneity. Maternity leave effects on the three outcomes are found to be small and shortlived. This finding is understandable given that most policies in the United States allow leaves for only 12 weeks at most.

Suggested Citation

  • Hashimoto, Masanori & Percy, Rick & Schoellner, Teresa & Weinberg, Bruce A., 2004. "The Long and Short of It: Maternity Leave Coverage and Women’s Labor Market Outcomes," IZA Discussion Papers 1207, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1207
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    References listed on IDEAS

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    1. Edward P. Lazear, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(3), pages 699-726.
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    Cited by:

    1. Alewell, Dorothea & Pull, Kerstin, 2005. "Rechtsschutz für Mütter : eine ökonomische Analyse des Mutterschutzgesetzes und seiner Wirkungen auf die Beschäftigungssituation von Frauen (Legal protection for mothers * an economic analysis of the ," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 341-356.
    2. Rafael Lalive & Analía Schlosser & Andreas Steinhauer & Josef Zweimüller, 2014. "Parental Leave and Mothers' Careers: The Relative Importance of Job Protection and Cash Benefits," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 219-265.
    3. Natalia Ramírez Bustamante & Ana Maria Tribin Uribe & Carmiña O. Vargas, 2015. "Maternity and Labor Markets: Impact of Legislation in Colombia," Borradores de Economia 12610, Banco de la Republica.
    4. 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 and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27, pages 575-591.
    5. Bicakova, Alena & Kaliskova, Klara, 2016. "Career Breaks after Childbirth: The Impact of Family Leave Reforms in the Czech Republic," IZA Discussion Papers 10149, Institute of Labor Economics (IZA).
    6. Barbara Hanel, 2013. "The Impact of Paid Maternity Leave Rights on Labour Market Outcomes," The Economic Record, The Economic Society of Australia, vol. 89(286), pages 339-366, September.
    7. Troeger, Vera E. & Di Leo, Riccardo & Scotto, Thomas J. & Epifanio, Mariaelisa, 2020. "The Motherhood Penalties: Insights from Women in UK Academia," CAGE Online Working Paper Series 519, Competitive Advantage in the Global Economy (CAGE).
    8. Arango-Thomas, Luis Eduardo & Castellani, Francesca & Lora-Torres, Eduardo (ed.), 2016. "Desempleo femenino en Colombia," Books, Banco de la Republica de Colombia, number 2016a-12, December.
    9. Héctor Alberto Botello-Penaloza & Isaac Guerrero-Rincón, 2019. "Las leyes de licencia de maternidad y el mercado laboral en Colombia," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 13(1), pages 67-86, June.
    10. Görlich, D. & de Grip, A., 2007. "Human capital depreciation during family-related career interruptions in male and female occupations," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    11. 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 of Labor Economics (IZA).
    12. Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute of Labor Economics (IZA).
    13. J.D. Vlasblom & J. Plantenga, 2010. "Career effects of taking up parental leave. Evidence from a Dutch University," Working Papers 10-14, Utrecht School of Economics.
    14. Dorothea Alewell & Kerstin Pull, 2005. "Reform of the financing of maternity protection - a comment on the maternity protection ruling of the Federal Constitutional Court," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(04), pages 22-27, February.
    15. Alewell, Dorothea & Pull, Kerstin, 2005. "Rechtsschutz für Mütter : eine ökonomische Analyse des Mutterschutzgesetzes und seiner Wirkungen auf die Beschäftigungssituation von Frauen (Legal protection for mothers * an economic analysis of the ," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 341-356.
    16. 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.
    17. Joseph, Olivier & Pailhé, Ariane & Recotillet, Isabelle & Solaz, Anne, 2013. "The economic impact of taking short parental leave: Evaluation of a French reform," Labour Economics, Elsevier, vol. 25(C), pages 63-75.
    18. Alewell, Dorothea & Pull, Kerstin, 2005. "Rechtsschutz für Mütter : eine ökonomische Analyse des Mutterschutzgesetzes und seiner Wirkungen auf die Beschäftigungssituation von Frauen (Legal protection for mothers * an economic analysis of the ," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 341-356.
    19. 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 and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 25(2), pages 193-211.
    20. Natalia Ramírez Bustamante & Ana Maria Tribin Uribe & Carmiña O. Vargas, 2015. "Maternity and Labor Markets: Impact of Legislation in Colombia," BORRADORES DE ECONOMIA 012610, BANCO DE LA REPÚBLICA.
    21. Chiara Pronzato, 2009. "Return to work after childbirth: does parental leave matter in Europe?," Review of Economics of the Household, Springer, vol. 7(4), pages 341-360, December.

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    More about this item

    Keywords

    human capital; wages; female labor market; public policy; maternity leave;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • 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
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other

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