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The effects of family policy on maternal labor supply: Combining evidence from a structural model and a quasi-experimental approach

Johannes Geyer (), Peter Haan and Katharina Wrohlich ()

Labour Economics, 2015, vol. 36, issue C, 84-98

Abstract: Parental leave and subsidized child care are prominent examples of family policies supporting the reconciliation of family life and labor market careers for mothers. In this paper, we combine different empirical strategies to evaluate the employment effects of these policies for mothers with young children. In particular we estimate a structural labor supply model and exploit quasi-experimental variation from a parental leave reform in Germany. Our findings suggest that a combination of parental leave benefits and subsidized child care leads to sizable employment effects of mothers.

Keywords: Labor supply; Parental leave benefits; Childcare costs; Structural model; Natural experiment; Quasi-experimental approach (search for similar items in EconPapers)
JEL-codes: J22 H31 C52 (search for similar items in EconPapers)
Date: 2015
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Handle: RePEc:eee:labeco:v:36:y:2015:i:c:p:84-98