How Do Firms Respond to Parental Leave Absences?

Anne Brenøe, Ursa Krenk (), Andreas Steinhauer and Josef Zweimueller ()
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Ursa Krenk: University of Zurich
Josef Zweimueller: University of Zurich
Authors registered in the RePEc Author Service: Josef Zweimüller ()

No 2514, RFBerlin Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin)

Abstract: How do firms adjust their labor demand when a female employee takes temporary leave after childbirth? Using Austrian administrative data, we compare firms with and without a birth event and exploit policy reforms that significantly altered leave durations. We find that (i) firms adjust hiring, employment, and wages around leave periods, but these effects fade quickly; (ii) adjustments differ sharply by gender, reflecting strong gender segregation within firms; (iii) longer leave entitlements extend actual leave absences but have only short-term effects; and (iv) there is no impact on firm closure up to five years after birth.

Keywords: family leave; firms; labor supply; labor demand; gender; absence duration (search for similar items in EconPapers)
JEL-codes: H2 H5 J08 J13 J2 (search for similar items in EconPapers)
Date: 2025-05
New Economics Papers: this item is included in nep-hea and nep-lab
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