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Effects of Parental Leave Policies on Female Career and Fertility Choices

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  • Shintaro Yamaguchi

Abstract

This paper constructs and estimates a dynamic discrete choice structural model of female employment and fertility decisions that incorporates job protection and cash benefits of parental leave legislation. The estimated structural model is used for ex ante evaluation of policy reforms that change the duration of job protection and/or the arrangement for cash benefits. Counterfactual simulations indicate that introducing an initial one-year job protection policy increases maternal employment significantly, but extending the existing job protection period from one to three years has little effect. The employment effects of cash benefits also seem modest. Overall, parental leave policies have little effect on fertility.

Suggested Citation

  • Shintaro Yamaguchi, 2016. "Effects of Parental Leave Policies on Female Career and Fertility Choices," Department of Economics Working Papers 2016-10, McMaster University.
    • Handle: RePEc:mcm:deptwp:2016-10
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    File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/archive/McMasterEconWP2016-10.pdf
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    References listed on IDEAS

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    Cited by:

    1. Yamaguchi, Shintaro & Asai, Yukiko & Kambayashi, Ryo, 2018. "Effects of subsidized childcare on mothers’ labor supply under a rationing mechanism," Labour Economics, Elsevier, vol. 55(C), pages 1-17.
    2. Kazuaki Okamura & Nizamul Islam, 2021. "Effects of the timing of childbirth on female labor supply: an analysis using the sequential matching approach," Applied Economics, Taylor & Francis Journals, vol. 53(28), pages 3253-3266, June.
    3. Yamaguchi, Shintaro & Asai, Yukiko & Kambayashi, Ryo, 2018. "How does early childcare enrollment affect children, parents, and their interactions?," Labour Economics, Elsevier, vol. 55(C), pages 56-71.
    4. Hiroyuki Kasahara & Katsumi Shimotsu, 2018. "Estimation of Discrete Choice Dynamic Programming Models," The Japanese Economic Review, Springer, vol. 69(1), pages 28-58, March.
    5. Shintaro Yamaguchi, 2016. "Family Policies and Female Employment in Japan," Department of Economics Working Papers 2016-06, McMaster University.
    6. Shintaro Yamaguchi, 2017. "Family Policies and Female Employment in Japan," The Japanese Economic Review, Japanese Economic Association, vol. 68(3), pages 305-322, September.
    7. Shintaro Yamaguchi, 2017. "Family Policies and Female Employment in Japan," The Japanese Economic Review, Springer, vol. 68(3), pages 305-322, September.

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    More about this item

    Keywords

    parental leave; female labor supply; discrete choice model; structural estimation;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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