Employer Responses to Family Leave Programs
Arizo Karimi () and
Pengpeng Xiao ()
Additional contact information
Arizo Karimi: Department of Economics, Uppsala University, https://katalog.uu.se/profile/?id=N8-1030
Pengpeng Xiao: Department of Economics, Yale University, https://economics.yale.edu/people/graduate-students/pengpeng-xiao
No 6/20, Working Papers in Economics from University of Bergen, Department of Economics
Search frictions make worker turnover costly to firms. A three-month parental leave expansion in Sweden provides exogenous variation that we use to quantify firms’ adjustment costs upon worker absence and exit. The reform increased women’s leave duration and likelihood of separating from pre-birth employers. Firms with greater exposure to the reform hired additional workers and increased incumbent hours, incurring additional wage costs. These adjustment costs varied by firms’ availability of internal and external substitutes. Economy-wide analyses show that a higher reform exposure is correlated with fewer hires and lower starting wages of young women compared to men and older women.
Keywords: Parental Leave; Firm-Specific Human Capital; Statistical Discrimination (search for similar items in EconPapers)
JEL-codes: J13 J16 J21 J22 J31 (search for similar items in EconPapers)
Pages: 62 pages
New Economics Papers: this item is included in nep-bec and nep-hrm
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Journal Article: Employer Responses to Family Leave Programs (2023)
Working Paper: Employer responses to family leave programs (2020)
Working Paper: Employer Responses to Family Leave Programs (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:bergec:2020_006
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