Parental leave regulations, mothers’ labor force attachment and fathers’ childcare involvement: evidence from a natural experiment

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.     

Maternity Leave and Mothers’ Long-Term Sickness Absence: Evidence From West Germany

Exploiting unique German administrative data, we estimate the association between an expansion in maternity leave duration from two to six months in 1979 and mothers’ postbirth long-term sickness absence over a period of three decades after childbirth. Adopting a difference-in-difference approach, we first assess the reform’s labor market effects and, subsequently, prebirth and postbirth maternal long-term sickness absence, accounting for the potential role of the reform in mothers’ selection into employment. Consistent with previous research, our estimates show that the leave extension caused mothers to significantly delay their return to work within the first year after childbirth. We then provide difference-in-difference estimates for the number and length of spells of long-term sickness absence among returned mothers. Our findings suggest that among those returned, mothers subject to the leave extension exhibit a higher incidence of long-term sickness absence compared with mothers who gave birth before the reform. This also holds true after we control for observable differences in prebirth illness histories. At the same time, we find no pronounced effects on mothers’ medium-run labor market attachment following the short-run delay in return to work, which might rationalize a negative causal health effect. Breaking down the results by mothers’ prebirth health status suggests that the higher incidence of long-term sickness absence among mothers subject to the reform may be explained by the fact that the reform facilitated the reentry of a negative health selection into the labor market.     

How to stimulate single mothers on welfare to find a job: evidence from a policy experiment

We present the results from a policy experiment in which single mothers on welfare were stimulated to enter the labor market and increase their work experience. The aim of the policy was not per se for single mothers to leave welfare completely but to encourage them to find a job if only a part-time job. Two policy instruments were introduced: an earnings disregard and job creation. The experiment was performed at the municipality level in the Netherlands, a country with relatively high benefits and low incentives for single mothers to leave welfare for work. In our analysis, we make a distinction between native and immigrant welfare recipients. For immigrant single mothers, we find a positive employment effect of an earnings disregard. Job creation in addition to the earnings disregard increased working hours for some groups of single mothers. Although the outflow from welfare was not affected, welfare expenditures were reduced.     

The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model

Germany is known to have one of the lowest fertility rates among Western European countries and also relatively low employment rates of mothers with young children. Although these trends have been observed during the last decades, the German public has only recently begun discussing these issues. In order to reverse these trends, the German government recently passed a reform of the parental leave benefit system in line with the model practiced in Nordic countries. The core piece of the reform is the replacement of the existing means-tested parental leave benefit by a wage-dependent benefit for the period of one year. In this paper we simulate fiscal costs and expected labour market outcomes of this reform. Based on a micro-simulation model for Germany we calculate first-round effects, which assume no behavioural changes and second-round effects, where we take labour supply changes into account. Our results show that on average all income groups, couples and single households, benefit from the reform. The calculation of overall costs of the reform shows that the additional costs are moderate. As far as the labour market behaviour of parents is concerned, we find no significant changes of labour market outcomes in the first year after birth. However, in the second year, mothers increase their working hours and labour market participation significantly. Our results suggest that the reform will achieve one of its aims, namely the increase in the labour market participation of mothers with young children.

Time for Children: Trends in the Employment Patterns of Parents, 1967–2009

Using data from the 1967–2009 years of the March Current Population Surveys (CPS), we examine two important resources for children’s well-being: time and money. We document trends in parental employment, from the perspective of children, and show what underlies these trends. We find that increases in family work hours mainly reflect movements into jobs by parents—particularly mothers, who in prior decades would have remained at home. This increase in market work has raised incomes for children in the typical two-parent family but not for those in lone-parent households. Time use data from 1975 and 2003–2008 reveal that working parents spend less time engaged in primary childcare than their counterparts without jobs but more than employed peers in previous cohorts. Analysis of 2004 work schedule data suggests that non-daytime work provides an alternative method of coordinating employment schedules for some dual-earner families.     

Fathers’ Use of Childbirth Leave in Spain. The Effects of the 13-Day Paternity Leave

This article investigates, for the case of Spain, to what extent the introduction in March 2007 of a non-transferable 13-day paternity leave has encouraged men to make greater use of childbirth leave. Data were drawn from the Spanish Economically Active Population Survey, covering the period 2005–2009. We use a natural experiment approach, comparing the behavior of wage earners fathers with children of less than 1 year of age before and after the reform and using mothers as control group. After estimating a difference-in-differences logistic regression model we obtain statistical evidence that there is a higher percentage of males on leave in the reference week in the post-reform period (after 2007). The article also analyzes some of the personal and socio-economic determinants of the fathers’ use of childbirth leave. Fathers are more likely to be on leave if they have stability in employment, if there are facilities for reconciling work and family life (working in the public sector) and if the partner is employed. The father’s age has an interesting U-shaped influence.     

The Impact of Paternity Leave on Fathers’ Future Earnings

Using Norwegian registry data, we investigate the effect of paternity leave on fathers’ long-term earnings. If the paternity leave increased long-term father involvement, then we should expect a reduction in fathers’ long-term earnings as they shift time and effort from market to home production. For identification, we use the Norwegian introduction of a paternity-leave quota in 1993, reserving four weeks of the total of 42 weeks of paid parental leave exclusively for the father. The introduction of the paternity-leave quota led to a sharp increase in rates of leave-taking for fathers. We estimate a difference-in-differences model that exploits differences in fathers’ exposure to the paternity-leave quota by the child’s age and year of observation. Our analysis suggests that four weeks of paternity leave during the child’s first year decreases fathers’ future earnings, an effect that persists through our last point of observation, when the child is 5 years old. A battery of robustness tests supports our results.     

Changing the Gender Balance in Caring: Fatherhood and the Division of Parental Leave in Norway

In this article, we study fathers’ use of parental leave in Norway, using register data from 1993 to 1997. In 1993, a special father’s quota (1 month) was introduced in the parental leave program. The father’s quota is a success in the sense that 85% of fathers entitled to the leave use it, but few take more than their quota (1 month). One policy intention was to make a real change in the gender balance in care. The analyses show that gender balance in breadwinning has a strong effect on fathers’ use of parental leave: controlling for parents’ educational level, labor market attachment and father’s income, we find that the more mothers contribute to the family economy and the more equalized their earnings are, the more parental leave fathers take.     

Family policies,employment and poverty among partnered and single mothers

The risk of poverty for single mothers ranges from less than 2% in Sweden to more than 35% in the United States; less extreme cross-national variations also exist for partnered mothers. We explore which family policies are most effective at directly reducing poverty among families with children, and whether these policies indirectly reduce poverty through supporting mothers’ employment. We combine microdata from the Luxembourg Income Study with the Work-Family Policy Indicators dataset, and use multilevel logistic regressions to examine the associations between policy and poverty, controlling for individual-level factors. We find significant effects of family allowances, generous parental leaves and childcare provisions, with more powerful effects for single mothers. We further show that parental leave and childcare operate through boosting mothers’ employment, illustrating that work-family policies are useful for reducing poverty by enhancing mother's employment.     

From Motherhood Premium to Motherhood Penalty? Heterogeneous Effects of Motherhood Stages on Women’s Economic Outcomes in Urban China

Chinese women have reached a high level of labor force participation before China’s deepening economic reform starting from the early 1990s, while women’s deteriorating position in the labor market has been documented in recent literature. However, few studies connect the relationship between the presence of children at different ages and women’s labor market outcomes. Capitalizing on longitudinal data, this study uses a person-fixed-effects model to investigate the relationship between motherhood stages and women’s economic outcomes in urban China. It takes into consideration the impact of children at various ages, as well as the impact of growth in local economies. We find that very young children inhibit mothers’ employment, but the presence of school-aged children is positively correlated with mothers’ income. Our analysis further suggests that, with the development of local economies, the negative association of very young children and women’s labor activity is exacerbated, while the positive relationship between school-aged children and mothers’ income is weakened. Our findings also contribute to the literature on labor market institutions, gender-role ideologies, and the impact on women’s economic outcomes as they balance work with childrearing obligations.     

When Does Time Matter? Maternal Employment,Children’s Time With Parents,and Child Development

This study tests the two assumptions underlying popularly held notions that maternal employment negatively affects children because it reduces time spent with parents: (1) that maternal employment reduces children’s time with parents, and (2) that time with parents affects child outcomes. We analyze children’s time-diary data from the Child Development Supplement of the Panel Study of Income Dynamics and use child fixed-effects and IV estimations to account for unobserved heterogeneity. We find that working mothers trade quantity of time for better “quality” of time. On average, maternal work has no effect on time in activities that positively influence children’s development, but it reduces time in types of activities that may be detrimental to children’s development. Stratification by mothers’ education reveals that although all children, regardless of mother’s education, benefit from spending educational and structured time with their mothers, mothers who are high school graduates have the greatest difficulty balancing work and childcare. We find some evidence that fathers compensate for maternal employment by increasing types of activities that can foster child development as well as types of activities that may be detrimental. Overall, we find that the effects of maternal employment are ambiguous because (1) employment does not necessarily reduce children’s time with parents, and (2) not all types of parental time benefit child development.     

Social Policies and Families in Stress: Gender and Educational Differences in Work–Family Conflict from a European Perspective

In modern welfare states, family policies may resolve the tension between employment and care-focused demands. However these policies sometimes have adverse consequences for distinct social groups. This study examined gender and educational differences in working parents’ perceived work–family conflict and used a comparative approach to test whether family policies, in particular support for child care and leave from paid work, are capable of reducing work–family conflict as well as the gender and educational gaps in work–family conflict. We use data from the European Social Survey 2010 for 20 countries and 5296 respondents (parents), extended with information on national policies for maternity and parental leave and child care support from the OECD Family Database. Employing multilevel analysis, we find that mothers and the higher educated report most work–family conflict. Policies supporting child care reduce the level of experienced work–family conflict; family leave policy appears to have no alleviating impact on working parents’ work–family conflict. Our findings indicate that family policies appear to be unable to reduce the gender gap in conflict perception and even widen the educational gap in work–family conflict.     

Going Back Part-time: Family Leave Legislation and Women’s Return to Work

Using a multinomial logit model with data from the Survey of Income and Program Participation, this paper tests whether the implementation of the Family and Medical Leave Act (FMLA) is associated with an increase in return to work at part-time status among first-time mothers working full-time during their pregnancy. I find a statistically significant trend of increasingly higher odds of returning to work at part-time status relative to return at full-time status, beginning in 1993 (the year in which the FMLA is implemented). Furthermore, an additional week of either state or federal leave is significantly associated with a higher odds of return at part-time status. This article provides evidence that job protection and leave legislation may help facilitate higher levels of labor force participation among women with small children, through more flexible work arrangements.     

Family leave policies and women's retention after childbirth: Evidence from the United States, Britain, and Japan

This paper uses labour force survey data to examine the employment rates and employment decisions of women with young children in the United States, Britain and Japan. Our results confirm that young children have a very strong negative effect on women's employment; this effect is most pronounced in Britain. We then take advantage of panel data to investigate the effects of family leave coverage on women's job retention after childbirth. We find that family leave coverage increases the likelihood that a woman will return to her employer after childbirth in all three countries, with a particularly marked effect in Japan. This result suggests that the recent expansions in family leave coverage in the sample countries are likely to lead to increased employment of women after childbirth. Received: 10 July 1997/Accepted: 8 June 1998     

Does care matter? Care capital and mothers’ time to paid employment

The aim of this study is to introduce the concept of care capital and provide an example of its application in the context of childcare and maternal employment using the currently most suitable American data. We define care capital as the nexus of available, accessible, and experienced resources for care. The American setting is an ideal context to investigate the linkages between child care capital and maternal employment as the patterns of child care use tend to be more diverse compared to other national contexts. In the presented application of care capital, we examine mothers’ entry to paid employment during the first 36 weeks following a birth, and its association with the experience of non-parental child care use before labour force entry. Using data from the Early Childhood Longitudinal Survey—Birth Cohort (N = 10,400 mothers), results from discrete-time hazard models show that use of non-parental child care prior to employment is independently and positively associated with entry into maternal employment. This finding applies both to first-time mothers (n = 3,800) and to mothers of multiple children (n = 6,600). Although data currently available for investigating child care capital are limited with regard to care availability and access, our results suggests that childcare availability, access, and use, understood as a form of capital alongside economic and human capital, should be considered in future studies of maternal employment.     

The Effect of a First Born Child on Work and Childcare Time Allocation: Pre-post Analysis of Australian Couples

This paper uses Australian data from a national representative sample of Australian couples having their first child. Using data from before and after the birth of the child on a range of variables, including economic resources, gender attitudes, workplace flexibility, and availability of non-parental childcare, we first model the factors are associated with the decision to remain in work or not after the birth of the first child. The main finding here is that childbirth has a major impact on mothers’ paid work-time, whereas for fathers it has very little impact. Factors that are related to a mother’s decision to remain in work or not include the absolute (but not relative) pay of each parent, the father’s workplace flexibility, and paid parental leave available to the mother. We then model the factors that govern, for those mothers remaining in paid work, how much paid work they undertake. We find that changing employers is related to mothers’ work hours, as are absolute post-birth salaries, as is the relative pay of each partner. As with the decision to work or not, the availability of paid parental leave to the mother is significantly related to the amount of work-time for those mothers that do continue to work. Similarly, the use of external childcare is positively associated with maternal work hours. Finally, we model the factors that determine childcare time allocation and find that for neither parent do pre-birth economic resources significantly affect childcare time, once a decision about basic work patterns has been made. Gender role attitudes affect childcare time decisions, unlike work time decisions.     

Parents’ economic support of young-adult children: do socioeconomic circumstances matter?

We assess how the support parents provide to young adults as they leave school and begin working is related to their family’s socioeconomic circumstances. We do this using an innovative Australian data set which merges survey and administrative data. The survey data inform us about intergenerational co-residence and financial gifts and the administrative data about the family’s welfare receipt history. We find that disadvantaged young people are more likely to be economically independent of their parents than are their more advantaged peers. This disparity is larger for financial gifts than for co-residence and increases with age. Moreover, there is a complex relationship between parental support and participation in study and work. We find no evidence, however, that a lack of parental support is the source of the socioeconomic gradient in either studying or employment. These results are important in eliminating one potential pathway through which socioeconomic disadvantage limits young people’s outcomes.     

Welfare state context,female labour-market attachment and childbearing in Germany and Denmark

This study investigates the role of female labour-market attachment and earnings in childbearing progressions in two very different European contexts. By applying event-history techniques to German and Danish register data during 1981–2001, we demonstrate how female earnings relate to first, second and third birth propensities. Our study shows that female earnings are positively associated with first birth fertility in Denmark, while this is not the case in West Germany. We interpret our findings based on the fact that Danish social context and policy encourage women to establish themselves in the labour market before becoming mothers, while the German institutional context during the 1980s and 1990s was not geared towards encouraging maternal employment. For higher-order births, the results are less clearcut. For Denmark we find a slightly positive correlation between female earnings and second-birth fertility, while the association is somewhat negative for third-order births. In Germany, women tend to leave the labour market when becoming mothers. Non-employed mothers have elevated second and, in particular, third-birth rates. For the group of mothers who are employed, we find only a weak association between their earnings and higher-order fertility.     

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 Leave Take-Up of Fathers in Luxembourg

The study uses administrative data from Luxembourg to investigate fathers’ decisions to use parental leave. We focus on two measures of opportunity cost: the difference between the parental leave benefit and the salary of the father and the mean salary growth for a period of 6 months for each father. The first measure captures the direct opportunity cost, while the second is a proxy for foregone promotion opportunities. We use Cox proportional hazards model for the analysis. The results suggest a negative relationship between foregone income and taking parental leave. Surprisingly, salary growth appears to be positively related to the hazard of taking parental leave. Coefficients of control variables are in line with previous findings: fathers are more likely to use parental leave if they work in larger organization and for the first child.