On the Effect of Parental Leave Duration on Unemployment and Wages

Elena Del Rey, Maria Racionero and José Silva

CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University

Abstract: We introduce parental leave policies in a labour search and matching model and study the e¤ect of leave duration on unemployment and wages. We show that the e¤ects are ambiguous and depend on whether the ratio of wage bargaining power of employer relative to worker is higher or lower than the ratio of the net value of the leave for employer relative to worker. Our theoretical results suggest that simulated labour market outcomes in search and matching models may be sensitive to the calibration of key parameters that we identify.

Keywords: noncooperative game; aggregate game; con?ict; appropriation (search for similar items in EconPapers)
JEL-codes: E24 J38 (search for similar items in EconPapers)
Date: 2017-03
New Economics Papers: this item is included in nep-dge and nep-mac
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Citations: View citations in EconPapers (14)

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Journal Article: On the effect of parental leave duration on unemployment and wages (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:auu:dpaper:698

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