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Mom's Out: Employment after Childbirth and Firm-Level Responses

Author

Listed:
  • Carta, Francesca

    (Bank of Italy)

  • Casarico, Alessandra

    (Bocconi University)

  • De Philippis, Marta

    (Bank of Italy)

  • Lattanzio, Salvatore

    (Bank of Italy)

Abstract

This paper explores how firms respond to the exit of mothers from the labour market after childbirth. As an exogenous shifter in mothers' quits, we use a policy reform that extended the potential duration of unemployment benefits, which Italian mothers can receive also upon resigning within 12 months of giving birth. In response to the reform, we find that mothers have a higher probability of quitting in the first year after childbirth, a slightly decreased likelihood of being laid off, and a greater probability of remaining non-employed for at least 3 years following childbirth. Firms employing more exposed mothers respond by signicantly increasing net hiring and turnover, especially of young women. The surge in women's hiring primarily occurs through temporary contracts that are not converted into permanent ones, implying a persistent increase in the share of female temporary jobs. This outcome suggests the presence of statistical discrimination, manifesting through a decline in the quality of job opportunities available to women.

Suggested Citation

  • Carta, Francesca & Casarico, Alessandra & De Philippis, Marta & Lattanzio, Salvatore, 2024. "Mom's Out: Employment after Childbirth and Firm-Level Responses," IZA Discussion Papers 16908, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16908
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    References listed on IDEAS

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    More about this item

    Keywords

    quits; hirings; separations; unemployment benets; statistical discrimination; child penalty;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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