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Parental Leave from the Firm’s Perspective

Author

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  • Corekcioglu, Gozde

    (Ozyegin University)

  • Francesconi, Marco

    (University of Essex)

  • Kunze, Astrid

    (Norwegian School of Economics)

Abstract

This study investigates the firm’s response to parental leave induced worker absence. Combining a 20-week maternal leave expansion in Norway and detailed matched employer-employee data between 1983 and 2013, we identify the causal impact of absence on outcomes using a shift-share design. Employers with greater exposure to absence hire more women aged 40 or less and face more employment turnover. These adjustments do not affect profits, but lead to greater investments and sales and to a lower value added and a lower wage bill. One important channel behind such changes is a significant growth of young female part-time employment.

Suggested Citation

  • Corekcioglu, Gozde & Francesconi, Marco & Kunze, Astrid, 2025. "Parental Leave from the Firm’s Perspective," IZA Discussion Papers 17893, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17893
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    More about this item

    Keywords

    employer-employee matched data; part-time employment; corporate outcomes; firm-level gender employment dynamics; workforce composition; shift-share research design;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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