Barefoot and in a German kitchen: federal parental leave and benefit policy and the return to work after childbirth in Germany

Since 1979 German federal maternity leave and benefit policy has given women incentives to stay at home and take care of their newborn and youngest children. In 1986 this leave and benefit policy was changed in several ways, turning it into a powerful instrument for delaying mothers' return to work after childbirth. Using a flexible duration dependence estimation technique for proportional hazards due to Prentice and Gloeckler (1978) and applied to grouped durations by Meyer (1987, 1990), we estimate post childbirth return to work hazards for women during the federally protected leave protection period and immediately upon completion of this leave period. During the leave mothers are less likely to return to work the longer is the time left in the leave protection period; however, this result cannot be attributed generally to high levels of maternity benefits. When the leave protection period ends, mothers with strong labor force attachment who are still on leave return to their jobs.The second author gratefully acknowledges financial support by the National German Science Foundation (Deutsche Forschungsgemeinschaft) (Grant No. Wa 547/2-1). The authors would like to thank Richard Burkhauser, Barbara Butrica, John F. Ermisch, Joachim Frick, Siv Gustafsson, Philip Merrigan, Johannes Schwarze, Eileen Trzcinski, Jan-Dirk Vlasblom, Gert Wagner, Sheng Zhu and two anonymous referees for their help and suggestions. Remaining errors are of course, our own. Responsible editors: Siv S. Gustafsson, John F. Ermisch.     

Employment after childbearing and women's subsequent labour force participation: evidence from the British 1958 birth cohort

Data on women from the British 1958 Cohort Study is used as evidence on the determinants of their labour force participation at age 33. A conventional cross-sectional model of full or part-time employment makes use of some longitudinal material not normally included in such models. Whether the woman made the hitherto customary break from. employment at the time of the first maternity is included in recognition that this cohort was among the first generation to be offered Statutory Maternity Leave. Results suggest that the presence of children (still) inhibits full-time employment and raises the probability of part-time employment; that income effects on participation have continued to weaken while wage elasticity for full-time employment is high. Continuity of employment straight after childbearing raises the chances of subsequent full-time employment, but by no means guarantees it. Gains from maternity leave and other family friendly employment policies have been far from uniform.All correspondence to Heather Joshi. Our research was supported by the ESRC Grant R000234600. Helpful comments by John F. Ermisch, Siv Gustafsson and two anonymous referees are gratefully acknowledged. Responsible editors: Siv S. Gustafsson, John F. Ermisch.     

Maternal employment in Scandinavia: a comparison of the after-birth employment activity of Norwegian and Swedish women

A striking characteristic of recent Western labour market trends is the rise in employment among mothers of very young children. So far, few studies have analysed the impact of public policies on employment rates of young mothers. In this study we address this issue by comparing two similar countries, Norway and Sweden, which have the same set of policies with slight variations, using data sets with similar designs. We analyse rates of re-entry into paid work after first birth for mothers in 1968–88 by means of hazard regression. One important finding is that the right to paid maternity leave with jobsecurity greatly speeds up the return to work.We want to thank Jan Kowalski for programming assistence and the Swedish Research Council for the Social Sciences and the Swedish Council for Research in the Humanities and Social Sciences for financial support for the Swedish study. We are grateful to John F. Ermisch, Siv Gustafsson, to two anonymous referees and to colleagues at the Demography Unit for valuable comments. Responsible editors. Siv S. Gustafsson, John F. Ermisch.     

Parental disruption and the labour market performance of children when they reach adulthood

This paper uses data from the age 33 wave of the British National Child Development Survey (NCDS) to analyze the effects of a parental disruption (divorce or death of a father) on the labour market performance of children when they reach adulthood. The NCDS is a longitudinal study of all children born during the first week of March 1958 in England, Scotland, and Wales. Controlling for a rich set of pre-disruption characteristics, the results indicate that a parental disruption leads to moderately less employment among males and considerably lower wage rates among females at age 33. If pre-disruption characteristics are not controlled for, larger effects are estimated for both males and females. Parental disruption also seems to cause substantial reductions in educational attainment for both males and females. Received: 22 May 1998/Accepted: 27 April 1999     

Mothers in an insider-outsider economy: the puzzle of Spain

There is growing evidence that social policies towards mothers have important effects on their labour market behaviour. This article argues that these effects are less important in a Male Breadwinner Regime if there is employment insecurity in the household or if women intend to participate in the long-run. I consider the case of Spain, where the workforce has become polarized between insiders and outsiders and where social policies closely resemble the Male Breadwinner Regime. The results show that Spanish mothers fall into two groups: those who do not withdraw from the labor force after childbirth and those who withdraw and do not re-enter after their children arrive at school age. Entry or re-entry appears related to the husband's employment uncertainty. Married women in an insider household are less likely to be mobile than women in an outsider household.This research was initiated with the financial support from the Bank of Spain (Fondo para Estudios sobre el Mercado de Trabajo) and the CIRIT (Generalitat de Catalunya). An earlier version has been published in Spanish in Adam, 1995 a. I benefited from presentations in the session on Women's Labour Force Transitions in the ESPE ninth annual meeting at Lisbon, in the IESA (CSIC, Madrid) seminar, in the session on European Labour Markets in the IEA meeting at Tunis, and in the IGIER seminar. I thank Namkee Ahn, Siv Gustafsson, John Ermisch, Andrea Ichino, Sergi Jiménez, Dennis Snower, Robert Waldmann and an anonymous referee for comments. My very especial thanks go to my thesis supervisor, John Micklewright, to Gosta Esping-Andersen, John Myles and David Soskice. Responsible editors: Siv S. Gustafsson, John F. Ermisch.     

Long run opportunity-costs of children according to education of the mother in the Netherlands

Children claim a large part of the parents' potential resources, particularly their time. Direct time costs arise through the time spent out of the labour force while the children are small, indirect costs are the result of lower investment into human capital. It is demonstrated in this paper that the average opportunity costs of children of lower educated mothers can be higher than those of higher educated mothers.The author wishes to thank his colleagues from de Leerstoel Vergelijkende Bevolkings- en Emancipatie-economie, especially Siv Gustafsson, John F. Ermisch and two anonymous referees for their comments and suggestions on earlier drafts of this paper. The author is also thankful for Mr. and Mrs. van Ingen for their advice on improving the English text. Financial support from the FMO is gratefully acknowledged. Responsible editors: Siv S. Gustafsson, John F. Ermisch.     

The allocation and value of time assigned to housework and child-care: An analysis for Switzerland

In this paper, data from the 1997 Swiss Labour Force Survey are used to analyse the allocation and value of time assigned to housework and child-care. It is shown that men's allocation of time to housework and child-care is largely invariant to changes in socio-economic factors. Women's allocation of time to housework and child-care, on the other hand, is shown to depend on several social, economic, and demographic factors. The value of time assigned to housework and child-care is calculated with two market replacement cost methods and three opportunity cost methods. The results show that the value of time assigned to housework and child-care ranges from 27% to 39% and from 5% to 8% of GDP (in 1997), respectively. The value of time assigned to housework and child-care is also calculated for different household structures. Received: 15 April 1999/Accepted: 5 May 2000     

Labour supply effects of a cash-for-care subsidy

From 1999, all parents in Norway with children aged one to three, who did not attend publicly subsidised daycare, became eligible for a cash-for-care (CFC) subsidy. One effect of the CFC-subsidy was to increase in the relative price of external child care. This article analyses whether the CFC-subsidy has led to a reduction in the labour supply of mothers. A framework for evaluating policy reforms when reforms are equally and nation-wide accessible is put forward. The results show that the CFC-subsidy has reduced womens labour supply. The results are sustained after controlling for contemporaneous macroeconomic shocks, using a triple difference approach.The author thanks Hege Torp, Erling Barth and Harald Dale-Olsen at The Institute for Social Research, as well as participants at the European Society for Population Economics (ESPE) conference in Bilbao in June 2002, participants at the Lunch-seminar at Statistics Norway, and two anonymous referees for valuable comments. The work is financed by the Norwegian Research Council, grant #137230/530. The financial support is gratefully acknowledged.Responsible editor: Deborah Cobb-Clark.     

A note on the changing relationship between fertility and female employment rates in developed countries

In this paper we look at a panel of OECD aggregate fertility and labor market data between 1970 and 1995 and we report some striking recent developments. Total Fertility Rates (TFR) were falling and Female Participation Rates (FPR) were increasing, conforming to a well known long-run trend. Along the cross-sectional dimension, the correlation between TFR and FPR was negative and significant during the 1970's and up to the early 1980's. This seemed consistent with secular comovements. However, by the late 1980's the correlation had become positive and equally significant. We discuss our findings within the framework of standard neoclassical models of fertility and labor supply adapted to macro data, as in Butz and Ward (1979). Received: 14 April 2000/Accepted: 29 December 2000 All correspondence to Pedro Mira. Namkee Ahn is grateful for financial support received from the Bank of Spain and from Spain's Ministerio de Educación y Cultura, grant SEC97-1249. We benefited from comments by two anonymous referees and by seminar participants at FEDEA, CEMFI and ESPE-98. All remaining errors are our own. Responsible editor: John F. Ermisch.     

Employment and child-care choices of single-parent families in Canada and the United States

This paper examines employment and child-care choices of single-parent families with young children in the United States and Canada, using a pooled data set based on recent national surveys in each country. We find that the employment and child-care choices of Canadian families are similar to those of U.S. families. Estimates of a model of employment and child-care choices indicate significant effects of child-care subsidies, child-care prices, and wage rates on employment and child-care choices. Received: 1 February 2000/Accepted: 15 January 2001     

Returns to education in the Irish youth labour market

Using data from two large-scale household surveys in 1987 and 1994, we estimate wage equations which show substantial increases in returns to university education for young Irish workers over the period, despite the exceptional increase in numbers with these qualifications. Returns to non-degree third level certificates and diplomas fell in relative terms, but returns to qualifications obtained by those leaving school at about 16 years of age rose. We argue that the increased return to university education primarily reflects the generalised shift in demand towards skilled labour internationally and the open nature of the Irish labour market. However, a floor may have been placed under earnings for low-skilled youth by the increased generosity of income support available to them. Received: 29 December 1997/Accepted: 7 August 1998     

Estimating intrahousehold allocation in a collective model with household production

The purpose of this paper is to estimate the intra-family distribution of income and the individual demand for leisure and household production from Swedish cross-sectional household data. As a basis for the analysis, we use a collective model where each individual is characterized by his or her own utility function and divides total time between leisure, household production and market work. For the purpose of comparison, we also estimate a version that is consistent with a more traditional model of labor supply, the unitary model. Received: 14 April 2000/Accepted: 12 January 2001     

Aboriginals as unwilling immigrants: Contact, assimilation and labour market outcomes

Like immigrants, aboriginal populations' economic success may be enhanced by the acquisition of skills and traits appropriate to the “majority” culture in which they reside. Using 1991 Canadian Census data, we show that Aboriginal labour market success is greater for Aboriginals whose ancestors intermarried with non-Aboriginals, for those who live off Indian reserves, and for those who live outside the Yukon and Northwest Territories. While these three “facts” could also be explained by a combination of other processes, such as discrimination, physical remoteness, and selection, only the skill/trait acquisition, or “assimilation” hypothesis is consistent with all three. Received: 04 August 1998/Accepted: 12 October 2000     

Time preference and labour migration in an OLG model with land and capital

This paper constructs a two-country migration model in the lines of Galor (1986), in which the world population consists of individuals of two types who have different time preferences. Production uses three inputs: mobile labour, immobile capital and land. It is shown that both countries are necessarily inhabited by agents of both types and exhibit equal density of population and equal interest rate at the steady state equilibrium of the integrated economy. The steady state welfare implications of international labour migration are studied.This paper has been written during Philippe Michel's visit at CORE, September 1994. Earlier drafts of this paper have been presented at the meeting Journées d'étude générations imbriquées (Marseille, November 24–26, 1994), at the ESPE conference (Lisbon, June 1–3, 1995) and at the EEA annual meeting (Prag, September 1–3, 1995). Comments by participants are gratefully acknowledged. We are also grateful to Stéphane Déo, Kamhon Kan, Pierre Pestieau, Christoph Schmidt and two anonymous referees for helpful comments. The usual disclaimer applies.Responsible editor: Alessandro Cigno     

Women's labor force transitions in connection with childbirth: a panel data comparison between Germany,Sweden and Great Britain

In this paper we make use of the panel aspects of the German GSOEP, the Swedish HUS and the British BHPS data. In these data sets we known month and year of childbirth and the month to month labor force status of the mother also before giving birth. This permits analysis of labor force transitions triggered by child births of different birth orders. From macro data Swedish women are known to have the highest labor force participation. The difference in total labor force participation of women is totally a result of fewer mothers entering the labor force and entering later in Germany and Great Britain than in Sweden. This paper shows that before birth of first child there is no such difference. We find that German and British women have even higher full-time labor force participation than Swedish women 12 months before the birth of the first child. The difference is more pronounced for second and third births than for first births. We suggest that these differences are caused by different family policy regimes where Germany can be characterized as a breadwinner regime and Sweden a regime oriented towards equal role sharing of father and mother. Our results on determinants of being in the labor force both after and before the birth of a child as well as determinants of the tempo of entering the labor force after birth shows that women's own human capital is important both in Germany and Great Britain, whereas in Sweden also less educated women have entered the labor force by the time the child is 2 years old.All correspondence to Cécile Wetzels. We are grateful to Andrew McCulloch from ESRC Research Centre on Micro-Social Change in Britain, who delivered the British BHPS-data. We also want to thank John F. Ermisch, Siv Gustafsson, Diane Sainsbury and two anonymous referees for useful comments. Financial support has been received by the Swedish Council in the Humanities and Social Sciences and the EU Human Capital and Mobility (HCM) network for the Female Labour Force Participation Network within which framework this analysis has been carried out. Responsible editors: S. S. Gustafsson, John R Ermisch.     

The long-run labour market consequences of teenage motherhood in Britain

Common wisdom states that teenage childbearing reduces schooling, labour market experience and adult wages. However, the decisions to be a teenage mother, to quit school, and be less attached to the labour market might all stem from some personal or family characteristics.  Using the National Child Development Study (NCDS), we find that in Britain teenage childbearing decreases the probability of post-16 schooling by 12–24%. Employment experience is reduced by up to three years, and the adult pay differential ranges from 5% to 22%. The negative impact of teen motherhood on various adult outcomes is not only due to some pre-motherhood characteristics; hence policies aiming to encourage return to school and participation in the labour market may be an efficient way to reduce the long-term consequences of teenage pregnancy. Received: 10 October 2000/Accepted: 3 April 2002 All correspondence to Arnaud Chevalier. We are indebted to Martyn Andrews, Colm Harmon, Gauthier Lanot, Ian Walker and to the participants at the EEEG annual meeting (Southampton, 2000) and seminars at Keele University, LSE and Warwick University for their comments that greatly improved earlier versions of this paper. We also thank two anonymous referees and Christoph Schmidt for their insightful comments. All remaining errors are ours. The data was supplied by the Economic and Research Council's Data Archive at the University of Essex and are used with permission of the Controller of Her Majesty's Stationery Office. Responsible editor: Christoph M. Schmidt.     

Natives and migrants in the London labour market, 1929–1931

Migrants are sometimes regarded as marginal workers in metropolitan labour markets. London has long been a major destination for migrants from elsewhere in Britain and abroad. In this paper we examine the earnings and unemployment experience in 1929–1931 of male workers who migrated to London, or within London. We use data from the New Survey of London Life and Labour, a large survey of working class households, the records from which have recently been computerised. Our findings indicate that migrants were not marginal, in fact they enjoyed slightly higher earnings and lower unemployment incidence than native Londoners. Much of the advantage can be explained by differences in average skill levels and personal characteristics. Received: 2 November 1999/Accepted: 3 August 2000     

Health effects of child work: Evidence from rural Vietnam

We test whether work in childhood impacts on health. We focus on agricultural work, the dominant form of child work worldwide. Data are from the Vietnam Living Standards Survey, 1992–93 and 1997–98. We correct for both unobservable heterogeneity and simultaneity biases. Instruments are land holdings and commune labour market and school quality indicators. We examine three indicators of health: weight-for-age Z-score; reported illness; and, height growth. There is clear evidence of a healthy worker selection effect. We find little evidence of a contemporaneous negative impact of child work on health but, particularly for females, work undertaken during childhood raises the risk of illness up to five years later. For boys, the risk is increasing with the period of time in work. There is no evidence that work impedes the growth of the child. This work was undertaken as part of the Understanding Children's Work project, an inter-agency program between the International Labour Organisation, UNICEF and the World Bank. The views expressed are those of the authors alone and do not reflect positions of the sponsoring organisations. We are grateful to the Government of Vietnam for permission to use the data. We thank two referees for very helpful comments. Responsible editor: Alessandro Cigno.     

Changing fertility rates in developed countries. The impact of labor market institutions

During the last two decades fertility rates have decreased and have become positively correlated with female participation rates across OECD countries. I use a panel of 23 OECD nations to study how different labor market arrangements shaped these trends. High unemployment and unstable contracts, common in Southern Europe, depress fertility, particularly of younger women. To increase lifetime income though early skill-acquisition and minimize unemployment risk, young women postpone (or abandon) childbearing. Further, both a large share of public employment, by providing employment stability, and generous maternity benefits linked to previous employment, such as those in Scandinavia, boost fertility of the 25–29 and 30–34 year old women.Financial help from a CRB grant from the University of Illinois is gratefully acknowledged. I would like to thank Carles Boix, Barry Chiswick, Carmel Chiswick, Evelyn Lehrer, three anonymous referees and seminar participants at ESPE 2000 (Bonn), Illinois Economic Meetings 2000 (Chicago), Simposi dAnalisi Economica 2000 (Barcelona), 2001 Winter meetings of the Econometric Society in New Orleans, ESPE 2001 (Athens), Braga (Portugal), University of Chicago, De Paul University, PAA 2002 (Atlanta) for helpful comments; Gosta Esping-Andersen for providing some data and Cristina Mora for excellent research assistance. Responsible editor: Junsen Zhang.     

Contraceptive acceptance and pregnancy: a matrix approach to the analysis of competing risks

Abstract This paper represents an initial attempt to formalize the relationships among post-partum sterility, fecundability, and contraceptive acceptance in terms of absorbing Markov chains. Acceptance of contraception offered by family planning programmes is analyzed as a possible event in time for a cohort of recently delivered women as they pass through phases of temporary sterility and fecundability towards another possible pregnancy. The results of the study indicate that once a woman leaves the post-partum anovulatory stage, the probability of her becoming pregnant again is large compared to the competing rates of contraceptive acceptance currently in force. Unless highly fecund non-contracepting women are approached by family planning programmes shortly after a pregnancy has been terminated (by childbirth or abortion), they will quickly become ineligible to accept either the pill or IUD because of once again being 'currently pregnant'.