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Can Parents' Right to Work Part-Time Hurt Childbearing-Aged Women? A Natural Experiment with Administrative Data

Author

Listed:
  • Fernández-Kranz, Daniel

    () (IE Business School, Madrid)

  • Rodríguez-Planas, Núria

    () (Queens College, CUNY)

Abstract

Using a differences-in-differences approach and controlling for individual unobserved heterogeneity, we evaluate the impact of a 1999 law that granted all workers with children younger than 7 years old protection against a layoff if the worker had previously asked for a work-week reduction due to family responsibilities. As only mothers took advantage of these arrangements, we find that after the law, employers were: (i) more likely to let childbearing-aged working women "go" relative to their male counterparts; (ii) less likely to promote childbearing-aged women into good jobs; and (iii) less likely to hire childbearing-aged women. In addition, employers were able to pass at least part of the cost to childbearing-aged women through lower wages, and the amount passed to workers increased with the precariousness of the job. Heterogeneity analysis reveals that the effect on employment transitions is mainly driven by low-skilled workers and those in blue-collar jobs, while the effect on wages holds across all groups. Evidence that the substitution away from (good) jobs widens over time suggests employer learning. These results are robust to the use of different specifications and placebo tests.

Suggested Citation

  • Fernández-Kranz, Daniel & Rodríguez-Planas, Núria, 2013. "Can Parents' Right to Work Part-Time Hurt Childbearing-Aged Women? A Natural Experiment with Administrative Data," IZA Discussion Papers 7509, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7509
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    References listed on IDEAS

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    1. Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, "undated". "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms," Working Papers 2003-14, FEDEA.
    2. Olsson, Martin, 2009. "Employment protection and sickness absence," Labour Economics, Elsevier, vol. 16(2), pages 208-214, April.
    3. Fitzenberger, Bernd & Sommerfeld, Katrin & Steffes, Susanne, 2013. "Causal effects on employment after first birth — A dynamic treatment approach," Labour Economics, Elsevier, vol. 25(C), pages 49-62.
    4. Azmat, Ghazala & González, Libertad, 2010. "Targeting fertility and female participation through the income tax," Labour Economics, Elsevier, vol. 17(3), pages 487-502, June.
    5. Guell, Maia & Petrongolo, Barbara, 2007. "How binding are legal limits? Transitions from temporary to permanent work in Spain," Labour Economics, Elsevier, vol. 14(2), pages 153-183, April.
    6. Alan Manning & Barbara Petrongolo, 2008. "The Part-Time Pay Penalty for Women in Britain," Economic Journal, Royal Economic Society, vol. 118(526), pages 28-51, February.
    7. Engellandt, Axel & Riphahn, Regina T., 2005. "Temporary contracts and employee effort," Labour Economics, Elsevier, vol. 12(3), pages 281-299, June.
    8. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Género, mercado laboral y políticas públicas en España: tres décadas de evolución
      by Virginia Sánchez Marcos in Politikon on 2015-03-05 15:13:18

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    1. repec:taf:japsta:v:43:y:2016:i:11:p:2044-2052 is not listed on IDEAS
    2. Fernández Kranz, Daniel & Lechner, Michael & Rodriguez-Planas, Nuria, 2015. "A note on difference-in-difference estimation by Fixed Effects and OLS when there is panel non-response," Economics Working Paper Series 1507, University of St. Gallen, School of Economics and Political Science.
    3. Michael Lechner & Nuria Rodriguez-Planas & Daniel Fernández Kranz, 2016. "Difference-in-difference estimation by FE and OLS when there is panel non-response," Journal of Applied Statistics, Taylor & Francis Journals, vol. 43(11), pages 2044-2052, August.

    More about this item

    Keywords

    female employment transitions and wages; fixed-term and permanent contract;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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