The effects of parental leave extension on training for young women

Using three datasets for West Germany, we estimate the effect of the extension of parental leave from between 10 and 18 to 36 months on young women’s participation in job-related training. Specifically, we employ difference-in-differences identification strategies using control groups of older women and young and older men. We find that parental leave extension negatively affects job-related training for young women, even if they do not have children, especially when the focus is on employer-arranged training. There is tentative evidence that young women partly compensated for this reduction in employer-arranged training by increasing training on their own initiative.