Scandinavian Working Papers in Economics
Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics
No 11/2025: Parental Leave from the Firm’s Perspective
Gozde Corekcioglu (), Marco Francesconi () and Astrid Kunze ()
Additional contact information
Gozde Corekcioglu: Dept. of Economics, Ozyegin University, Postal: Ozyegin University, Department of Economics, Nisantepe Mh. Orman Sk. Tasdelen Cekmekoy, 34790 Istanbul, Turkey
Marco Francesconi: Dept. of Economics, University of Essex, Postal: University of Essex, Department of Economics , 5B.328, Colchester Campus , Wivenhoe Park, Colchester, , CO4 3SQ, The United Kingdom
Astrid Kunze: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Abstract: This study investigates the firm’s response to parental leave induced worker absence. Combining a 20-week maternal leave expansion in Norway and detailed matched employer-employee data between 1983 and 2013, we identify the causal impact of absence on outcomes using a shift-share design. Employers with greater exposure to absence hire more women aged 40 or less and face more employment turnover. These adjustments do not affect profits, but lead to greater investments and sales and to a lower value added and a lower wage bill. One important channel behind such changes is a significant growth of young female part-time employment.
Keywords: Workforce composition; Firm-level gender employment dynamics; Corporate outcomes; Part-time employment; Employer-employee matched data; Shift-share research design
JEL-codes: J16; J21; J23; J81; L23; L25
Language: English
62 pages, May 5, 2025
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