Parental Leave from the Firm’s Perspective

Gozde Corekcioglu (), Marco Francesconi () and Astrid Kunze ()
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Gozde Corekcioglu: Dept. of Economics, Ozyegin University, Postal: Ozyegin University, Department of Economics, Nisantepe Mh. Orman Sk. Tasdelen Cekmekoy, 34790 Istanbul, Turkey, https://www.gozdecorekcioglu.com/
Marco Francesconi: Dept. of Economics, University of Essex, Postal: University of Essex, Department of Economics , 5B.328, Colchester Campus , Wivenhoe Park, Colchester, , CO4 3SQ, The United Kingdom, https://sites.google.com/view/marcofrancesconi
Astrid Kunze: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway, https://astridkunze.com/

No 11/2025, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: This study investigates the firm’s response to parental leave induced worker absence. Combining a 20-week maternal leave expansion in Norway and detailed matched employer-employee data between 1983 and 2013, we identify the causal impact of absence on outcomes using a shift-share design. Employers with greater exposure to absence hire more women aged 40 or less and face more employment turnover. These adjustments do not affect profits, but lead to greater investments and sales and to a lower value added and a lower wage bill. One important channel behind such changes is a significant growth of young female part-time employment.

Keywords: Workforce composition; Firm-level gender employment dynamics; Corporate outcomes; Part-time employment; Employer-employee matched data; Shift-share research design (search for similar items in EconPapers)
JEL-codes: J16 J21 J23 J81 L23 L25 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2025-05-05
New Economics Papers: this item is included in nep-lab
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