Now Daddy's Changing Diapers and Mommy's Making Her Career - Evaluating a Generous Parental Leave Regulation Using a Natural Experiment
Over the last decades many OECD countries introduced parental leave regulations in order to counteract low and decreasing birth rates. In general, these regulations aim at making parenthood more attractive and more compatible with a working career, especially for women. The recent German Elterngeld reform is one example: By replacing 67 per cent of prepartum parental labor earnings for up to 14 months after birth of the child - if both father and mother take up the transfer - it intends to i) smooth or prevent households' earnings decline postpartum, ii) make childbearing attractive for working women while iii) keeping them close to the labor market, and iv) incentivize fathers to participate in childcare. We evaluate the reform by using a natural experiment created by the quick legislative process of the Elterngeld reform: Comparing outcomes of parents with children born shortly after and before the coming into effect of the law on 1 January 2007 yields unbiased estimates of the reform effects, because at the time when these children were conceived none of the parents knew that the regulation would be in force by the time their child is born. Our results are based on unique data from the official evaluation of the reform, which we conducted for the German government, and they show that the reform has been generally successful in attaining its objectives. In particular, we find a significant decrease in mothers' employment probability during the 12 months after giving birth, and a significant increase in mothers' employment probability after the Elterngeld transfer expires.
|Date of creation:||Oct 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rwi-essen.de/
More information through EDIRC
|Order Information:||Web: http://www.rwi-essen.de/publikationen/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alícia Adserà, 2004. "Changing fertility rates in developed countries. The impact of labor market institutions," Journal of Population Economics, Springer, vol. 17(1), pages 17-43, February.
- Gustafsson, Siv S, et al, 1996.
"Women's Labor Force Transitions in Connection with Childbirth: A Panel Data Comparison between Germany, Sweden and Great Britain,"
Journal of Population Economics,
Springer, vol. 9(3), pages 223-46, August.
- Siv S. Gustafsson & Shirley Dex & Cécile M. M. P. Wetzels & Jan Dirk Vlasblom, 1996. "Women`s labor force transitions in connection with childbirth: A panel data comparison between Germany, Sweden and Great Britain," Journal of Population Economics, Springer, vol. 9(3), pages 223-246.
- Johannes Geyer & Viktor Steiner, 2007.
"Short-Run and Long-Term Effects of Childbirth on Mothers' Employment and Working Hours across Institutional Regimes: An Empirical Analysis Based on the European Community Household Panel,"
Discussion Papers of DIW Berlin
682, DIW Berlin, German Institute for Economic Research.
- Geyer, Johannes & Steiner, Viktor, 2007. "Short-Run and Long-Term Effects of Childbirth on Mothers’ Employment and Working Hours Across Institutional Regimes: An Empirical Analysis Based on the European Community Household Panel," IZA Discussion Papers 2693, Institute for the Study of Labor (IZA).
- Michaud, Pierre-Carl & Tatsiramos, Konstantinos, 2008.
"Fertility and Female Employment Dynamics in Europe: The Effect of Using Alternative Econometric Modeling Assumptions,"
IZA Discussion Papers
3853, Institute for the Study of Labor (IZA).
- Pierre‐Carl Michaud & Konstantinos Tatsiramos, 2011. "Fertility and female employment dynamics in Europe: the effect of using alternative econometric modeling assumptions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(4), pages 641-668, 06.
- Pierre-Carl Michaud & Konstantinos Tatsiramos, 2008. "Fertility and Female Employment Dynamics in Europe: The Effect of Using Alternative Econometric Modeling Assumptions," Working Papers 643, RAND Corporation Publications Department.
- Rafael Lalive & Josef Zweimüller, 2009. "How does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments," The Quarterly Journal of Economics, MIT Press, vol. 124(3), pages 1363-1402, August.
- Ekberg, John & Eriksson, Rickard & Friebel, Guido, 2013.
"Parental leave — A policy evaluation of the Swedish “Daddy-Month” reform,"
Journal of Public Economics,
Elsevier, vol. 97(C), pages 131-143.
- Ekberg, John & Eriksson, Rickard & Friebel, Guido, 2005. "Parental Leave – A Policy Evaluation of the Swedish "Daddy-Month" Reform," IZA Discussion Papers 1617, Institute for the Study of Labor (IZA).
- Muehler, Grit, 2008. "Institutional Childcare: An Overview on the German Market," ZEW Discussion Papers 08-077, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute for the Study of Labor (IZA).
- Marcus Tamm, 2009. "The Impact of a Large Parental Leave Benefit Reform on the Timing of Birth around the Day of Implementation," Ruhr Economic Papers 0098, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
When requesting a correction, please mention this item's handle: RePEc:rwi:repape:0145. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Weiler)
If references are entirely missing, you can add them using this form.