Scandinavian Working Papers in Economics
Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy
No 2020:6: Maternal employment effects of paid parental leave
Annette Bergemann () and Regina T. Riphahn ()
Additional contact information
Annette Bergemann: University of Bristol, Postal: University of Bristol, Department of Economics, Priory Road Complex, Priory Road, BS8 1TU, Bristol, United Kingdom
Regina T. Riphahn: Friedrich-Alexander University, Postal: Friedrich-Alexander University , Erlangen-Nürnberg, , Lange Gasse 20, 90403 Nürnberg,Germany
Abstract: We study the short, medium, and long run employment effects of a substantial change in the parental leave benefit program in Germany. In 2007, a means-tested parental leave transfer program, which had paid benefits for up to two years, was replaced by an earnings related transfer, which paid benefits for up to one year. The reform generated winners and losers with heterogeneous response incentives. We find that the reform sped up the labor market return of all mothers after benefit expiration. Likely pathways for this substantial reform effect are changes in social norms and mothers' preferences for economic independence
Keywords: female labor supply; maternal labor supply; parental leave; parental leave benefit; child-rearing benefit
92 pages, May 4, 2020
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