Parental leave regulations, mothers’ labor force attachment and fathers’ childcare involvement: evidence from a natural experiment
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In 2007, Germany implemented a generous parental leave regulation in order to make parenthood more attractive and more compatible with a working career, especially for mothers. We evaluate the reform using a natural experiment that compares outcomes of parents with children born shortly after and before the coming into effect of the law, and find a significant decrease in mothers’ employment probability during the 12 months after giving birth, and an increase in mothers’ employment probability after the transfer expires. The implementation of two daddy months is currently not reflected in significant changes in fathers’ time devoted to childcare.
KeywordsParental leave Natural experiment Female labor market participation
JEL ClassificationH31 J13 J18
We gratefully acknowledge helpful suggestions by two anonymous referees and the editor, as well as by participants of ESPE 2009 Seville, EALE 2009 Tallinn, and a seminar at RWI. The usual disclaimer applies.
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