Parental Leave from the Firm’s Perspective

Gozde Corekcioglu (), Marco Francesconi () and Astrid Kunze ()
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Gozde Corekcioglu: Ozyegin University
Marco Francesconi: University of Essex
Astrid Kunze: Norwegian School of Economics

No 17893, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: employer-employee matched data; part-time employment; corporate outcomes; firm-level gender employment dynamics; workforce composition; shift-share research design (search for similar items in EconPapers)
JEL-codes: J16 J21 J23 J81 L23 L25 (search for similar items in EconPapers)
Date: 2025-05
New Economics Papers: this item is included in nep-gen and nep-lab
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