IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/10188.html
   My bibliography  Save this paper

The Impact of Paid Maternity Leave on Women’s Employment : Evidence Using Firm-LevelSurvey Data from Developing Countries

Author

Listed:
  • Amin,Mohammad
  • Islam,Asif Mohammed

Abstract

The relationship between paid maternity leave and the share of female workers inregistered private firms is analyzed using firm-level survey data for 111 developing and emerging countries.Theoretically, the relationship can be either positive or negative. Higher maternity leave raises the cost of femaleworkers to the employer, discouraging female employment. However, higher maternity leave encourages more females toenter the labor market, implying greater female employment. The results show that the latter effect dominates. That is,a positive, large, and statistically significant relationship is found between maternity leave and femaleemployment. A conservative baseline estimate is that the share of female workers in a firm increases by 2.08percentage points for each log point increase in the number of days of paid maternity leave. Alternatively, an increasein the number of days of paid maternity leave from its smallest to highest value (0 to 410 days) increases theshare of female workers by 12.5 percentage points. The positive relationship between female workers and maternityleave is much larger when maternity leave is fully funded by the government than when paid for by the employer, and incountries where there is a higher share of females in the childbearing age group of 20–29 years. These heterogeneitieshighlight channels that accentuate the relationship, thereby serving as checks against endogeneity concerns with theestimation. The distributional implications of paid maternity leave are also analyzed by estimating its impacton low-skilled versus high-skilled employment. Important policy implications of the findings are discussed.

Suggested Citation

  • Amin,Mohammad & Islam,Asif Mohammed, 2022. "The Impact of Paid Maternity Leave on Women’s Employment : Evidence Using Firm-LevelSurvey Data from Developing Countries," Policy Research Working Paper Series 10188, The World Bank.
  • Handle: RePEc:wbk:wbrwps:10188
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/099624009192215952/pdf/IDU0613dc8520b06604bc709b9604eb61253bea6.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephan Klasen, 2019. "What Explains Uneven Female Labor Force Participation Levels and Trends in Developing Countries?," The World Bank Research Observer, World Bank Group, vol. 34(2), pages 161-197.
    2. Uribe, Ana Maria Tribin & Vargas, Carmiña O. & Bustamante, Natalia Ramírez, 2019. "Unintended consequences of maternity leave legislation: The case of Colombia," World Development, Elsevier, vol. 122(C), pages 218-232.
    3. Bussemakers, Carlijn & van Oosterhout, Kars & Kraaykamp, Gerbert & Spierings, Niels, 2017. "Women’s Worldwide Education–employment Connection: A Multilevel Analysis of the Moderating Impact of Economic, Political, and Cultural Contexts," World Development, Elsevier, vol. 99(C), pages 28-41.
    4. Tunalı, İnsan & Kırdar, Murat G. & Dayıoğlu, Meltem, 2021. "Down and up the “U” – A synthetic cohort (panel) analysis of female labor force participation in Turkey, 1988–2013," World Development, Elsevier, vol. 146(C).
    5. Isis Gaddis & Stephan Klasen, 2014. "Economic development, structural change, and women’s labor force participation:," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 639-681, July.
    6. Rossin-Slater, Maya, 2017. "Maternity and Family Leave Policy," IZA Discussion Papers 10500, Institute of Labor Economics (IZA).
    7. Cooke, Dudley & Fernandes, Ana P. & Ferreira, Priscila, 2019. "Product market competition and gender discrimination," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 496-522.
    8. Marie Hyland & Simeon Djankov & Pinelopi Koujianou Goldberg, 2020. "Gendered Laws and Women in the Workforce," American Economic Review: Insights, American Economic Association, vol. 2(4), pages 475-490, December.
    9. Charles L. Baum II & Christopher J. Ruhm, 2016. "The Effects of Paid Family Leave in California on Labor Market Outcomes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(2), pages 333-356, April.
    10. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
    11. David Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2009. "Fertility, female labor force participation, and the demographic dividend," Journal of Economic Growth, Springer, vol. 14(2), pages 79-101, June.
    12. Goldin, Claudia, 2006. "The Quiet Revolution That Transformed Women’s Employment, Education, and Family," Scholarly Articles 2943933, Harvard University Department of Economics.
    13. Druedahl, Jeppe & Ejrnæs, Mette & Jørgensen, Thomas H., 2019. "Earmarked paternity leave and the relative income within couples," Economics Letters, Elsevier, vol. 180(C), pages 85-88.
    14. Aslim, Erkmen Giray & Panovska, Irina & Taş, M. Anıl, 2021. "Macroeconomic effects of maternity leave legislation in emerging economies," Economic Modelling, Elsevier, vol. 100(C).
    15. Maya Rossin-Slater, 2017. "Maternity and Family Leave Policy," NBER Working Papers 23069, National Bureau of Economic Research, Inc.
    16. MARIANA Viollaz & Hernan Winkler, 2022. "Does the Internet Reduce Gender Gaps? The Case of Jordan," Journal of Development Studies, Taylor & Francis Journals, vol. 58(3), pages 436-453, March.
    17. Karshenas, Massoud & Moghadam, Valentine M. & Alami, Randa, 2014. "Social Policy after the Arab Spring: States and Social Rights in the MENA Region," World Development, Elsevier, vol. 64(C), pages 726-739.
    18. Ross Macmillan & Naila Shofia & Wendy Sigle, 2018. "Gender and the Politics of Death: Female Representation, Political and Developmental Context, and Population Health in a Cross-National Panel," Demography, Springer;Population Association of America (PAA), vol. 55(5), pages 1905-1934, October.
    19. Mary Borrowman & Stephan Klasen, 2020. "Drivers of Gendered Sectoral and Occupational Segregation in Developing Countries," Feminist Economics, Taylor & Francis Journals, vol. 26(2), pages 62-94, April.
    20. Marianne Bertrand & Sandra E Black & Sissel Jensen & Adriana Lleras-Muney, 2019. "Breaking the Glass Ceiling? The Effect of Board Quotas on Female Labour Market Outcomes in Norway," Review of Economic Studies, Oxford University Press, vol. 86(1), pages 191-239.
    21. Pinjas Albagli & Tomás Rau, 2019. "The Effects of a Maternity Leave Reform on Children's Abilities and Maternal Outcomes in Chile," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1015-1047.
    22. Christopher J. Ruhm, 1998. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 285-317.
    23. Juhn, Chinhui & Ujhelyi, Gergely & Villegas-Sanchez, Carolina, 2014. "Men, women, and machines: How trade impacts gender inequality," Journal of Development Economics, Elsevier, vol. 106(C), pages 179-193.
    24. Dildar, Yasemin, 2015. "Patriarchal Norms, Religion, and Female Labor Supply: Evidence from Turkey," World Development, Elsevier, vol. 76(C), pages 40-61.
    25. Paloma Acevedo & Guillermo Cruces & Paul Gertler & Sebastian Martinez, 2017. "Living Up to Expectations: How Job Training Made Women Better Off and Men Worse Off," NBER Working Papers 23264, National Bureau of Economic Research, Inc.
    26. Claudia Goldin, 2006. "The Quiet Revolution That Transformed Women's Employment, Education, and Family," American Economic Review, American Economic Association, vol. 96(2), pages 1-21, May.
    27. Asif Islam & Silvia Muzi & Mohammad Amin, 2019. "Unequal Laws and the Disempowerment of Women in the Labour Market: Evidence from Firm-Level Data," Journal of Development Studies, Taylor & Francis Journals, vol. 55(5), pages 822-844, May.
    28. Mishra, Ankita & Mishra, Vinod & Parasnis, Jaai, 2021. "The asymmetric role of crime in women's and men's labour force participation: Evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 933-961.
    29. Vo, Thang T. & Ha, Truong Thiet, 2021. "Decomposition of gender bias in enterprise employment: Insights from Vietnam," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 182-194.
    30. Fallon, Kathleen M. & Mazar, Alissa & Swiss, Liam, 2017. "The Development Benefits of Maternity Leave," World Development, Elsevier, vol. 96(C), pages 102-118.
    31. Lawrence M. Berger & Jane Waldfogel, 2004. "Maternity leave and the employment of new mothers in the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(2), pages 331-349, June.
    32. Bertrand, Marianne & Black, Sandra & Lleras-Muney, Adriana & Jensen, Sissel, 2015. "Breaking the Glass Ceiling," CEPR Discussion Papers 10467, C.E.P.R. Discussion Papers.
    33. Zeev Maoz & Errol A. Henderson, 2013. "The World Religion Dataset, 1945--2010: Logic, Estimates, and Trends," International Interactions, Taylor & Francis Journals, vol. 39(3), pages 265-291, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vu, Khoa & Glewwe, Paul, 2022. "Maternity benefits mandate and women’s choice of work in Vietnam," World Development, Elsevier, vol. 158(C).
    2. Cecilia Machado & Valdemar Neto & Christiane Szerman, 2023. "Firm and Worker Responses to Extensions in Paid Maternity Leave," CESifo Working Paper Series 10736, CESifo.
    3. Amin,Mohammad & Islam,Asif Mohammed, 2021. "Exports and Women Workers in Formal Firms," Policy Research Working Paper Series 9527, The World Bank.
    4. Girsberger, Esther Mirjam & Hassani-Nezhad, Lena & Karunanethy, Kalaivani & Lalive, Rafael, 2023. "Mothers at work: How mandating a short maternity leave affects work and fertility," Labour Economics, Elsevier, vol. 84(C).
    5. Machado, Cecilia & Neto, Valdemar & Szerman, Christiane, 2023. "Firm and Worker Responses to Extensions in Paid Maternity Leave," IZA Discussion Papers 16555, Institute of Labor Economics (IZA).
    6. Hyland,Marie Caitriona & Islam,Asif Mohammed & Muzi,Silvia, 2020. "Firms' Discriminatory Behavior, and Women's Employment in the Democratic Republic of Congo," Policy Research Working Paper Series 9224, The World Bank.
    7. Benjamin Bennett & Isil Erel & Léa H. Stern & Zexi Wang, 2020. "Paid Leave Pays Off: The Effects of Paid Family Leave on Firm Performance," NBER Working Papers 27788, National Bureau of Economic Research, Inc.
    8. Paolo Verme, 2015. "Economic development and female labor participation in the Middle East and North Africa: a test of the U-shape hypothesis," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.
    9. Landais, Camille & Kleven, Henrik & Posch, Johanna & Steinhauer, Andreas & Zweimüller, Josef, 2020. "Do Family Policies Reduce Gender Inequality? Evidence from 60 Years of Policy Experimentation," CEPR Discussion Papers 15437, C.E.P.R. Discussion Papers.
    10. Amaia Altuzarra & Catalina Gálvez-Gálvez & Ana González-Flores, 2019. "Economic Development and Female Labour Force Participation: The Case of European Union Countries," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    11. Lalive, Rafael, 2021. "Mothers at Work: How Mandating Paid Maternity Leave Affects Employment, Earnings and Fertility," CEPR Discussion Papers 16418, C.E.P.R. Discussion Papers.
    12. Julio E. Romero Prieto, 2018. "La maternidad y el empleo formal en Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 16328, Banco de la República, Economía Regional.
    13. Barigozzi, Francesca & Cremer, Helmuth & Roeder, Kerstin, 2018. "Women's career choices, social norms and child care policies," Journal of Public Economics, Elsevier, vol. 168(C), pages 162-173.
    14. Aslim, Erkmen Giray & Panovska, Irina & Taş, M. Anıl, 2021. "Macroeconomic effects of maternity leave legislation in emerging economies," Economic Modelling, Elsevier, vol. 100(C).
    15. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    16. Davis, Lewis S. & Williamson, Claudia R., 2022. "Individualism and women's economic rights," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 579-597.
    17. Sarah H. Bana & Kelly Bedard & Maya Rossin‐Slater, 2020. "The Impacts of Paid Family Leave Benefits: Regression Kink Evidence from California Administrative Data," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(4), pages 888-929, September.
    18. Mohammad Amin & Asif Islam, 2015. "Does Mandating Nondiscrimination in Hiring Practices Influence Women's Employment? Evidence Using Firm-Level Data," Feminist Economics, Taylor & Francis Journals, vol. 21(4), pages 28-60, October.
    19. Enrico Rubolino, 2022. "Taxing the Gender Gap: Labor Market Effects of a Payroll Tax Cut for Women in Italy," Cahiers de Recherches Economiques du Département d'économie 22.01, Université de Lausanne, Faculté des HEC, Département d’économie.
    20. Elena Rey & Andreas Kyriacou & José I. Silva, 2021. "Maternity leave and female labor force participation: evidence from 159 countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 803-824, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:10188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.