On the effect of parental leave duration on unemployment and wages

Elena Del Rey, Maria Racionero and José Silva

Economics Letters, 2017, vol. 158, issue C, 14-17

Abstract: We introduce parental leave policies in a labor search and matching model and study the effect of leave duration on unemployment and wages. We show that the effects are ambiguous and depend on whether the net benefit of the leave for the worker relative to her bargaining power is larger than the net benefit of the leave for the firm relative to its bargaining power. Our results suggest that simulated labor market outcomes in search and matching models may be sensitive to the calibration of these key parameters of the model.

Keywords: Parental leave; Search and matching (search for similar items in EconPapers)
JEL-codes: E24 J38 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (14)

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Working Paper: On the Effect of Parental Leave Duration on Unemployment and Wages (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:158:y:2017:i:c:p:14-17

DOI: 10.1016/j.econlet.2017.06.029

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