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

  • Hashimoto, Masanori

    ()

    (Ohio State University)

  • Percy, Rick

    ()

    (Capital University)

  • Schoellner, Teresa

    (Ohio State University)

  • Weinberg, Bruce A.

    ()

    (Ohio State University)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1207.

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Length: 33 pages
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1207
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  1. Stephen A. Woodbury, 2009. "Unemployment," Chapters, in: Labor and Employment Law and Economics, chapter 17 Edward Elgar.
  2. Yoshio Higuchi & Jane Waldfogel & Masahiro Abe, 1999. "Family leave policies and women's retention after childbirth: Evidence from the United States, Britain, and Japan," Journal of Population Economics, Springer, vol. 12(4), pages 523-545.
  3. Lisa Barrow, 1998. "An analysis of women's return-to-work decisions following first birth," Working Paper Series WP-98-9, Federal Reserve Bank of Chicago.
  4. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 699-726, August.
  5. Christopher J. Ruhm & Jackqueline L. Teague, 1995. "Parental Leave Policies in Europe and North America," NBER Working Papers 5065, National Bureau of Economic Research, Inc.
  6. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
  7. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," NBER Working Papers 7732, National Bureau of Economic Research, Inc.
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