Labour market effects of reducing the gender gap in parental leave entitlements

Elena Del Rey, Maria Racionero and José Silva

Labour Economics, 2021, vol. 72, issue C

Abstract: We explore the effects of parental leave entitlements for mothers and fathers on wages and employment. We consider male and female workers who compete for the same jobs in a labour search and matching model with endogenous job search and leave take-up rates. We identify key theoretical effects and calibrate the model to simulate policy changes in France, Italy, Norway and Portugal. Reducing the gap in parental leave entitlements reduces gender wage gaps and increases gender employment rate gaps in these countries. Leave take-up rates increase with paid leave duration. In general, we find that job search intensity decreases when longer paid leave duration decreases wages.

Keywords: Parental leave; Search and matching; Labour market gaps (search for similar items in EconPapers)
JEL-codes: E24 J13 J18 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Labor Market Effects of Reducing the Gender Gap in Parental Leave Entitlements (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:72:y:2021:i:c:s0927537121000713

DOI: 10.1016/j.labeco.2021.102036

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