Female labor supply and parental leave benefits – the causal effect of paying higher transfers for a shorter period of time

Annette Bergemann and Regina Riphahn

No 2009:5, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: We study the labor supply effects of a major change in child-subsidy policy in Germany in 2007 designed to both increase fertility and shorten birth-related employment interruptions. The reform involved a move from a means-tested maternity leave benefit system that paid a maximum of 300 Euro for up to two years to an income dependent benefit system that replaced two third of the pre-birth income for at most one year. As the reform took place very recently, we estimate the labor supply effect by using data drawn from the German Socio-Economic Panel on the intention of women to return to the labor market; notably whether women are likely to return and whether they intend to return quickly. Our results show that the reform yields most of the intended effects: The fraction of mothers who responded that they were going to return to the labor market within a year since the interview increased by 14 percentage points.

Keywords: Female labor supply; fertility; child subsidy; parents money (search for similar items in EconPapers)
JEL-codes: J13 J21 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2009-02-19
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Female labour supply and parental leave benefits - the causal effect of paying higher transfers for a shorter period of time (2011)
Working Paper: Female Labor Supply and Parental Leave Benefits - The Causal Effect of Paying Higher Transfers for a Shorter Period of Time (2009)
Working Paper: Female Labor Supply and Parental Leave Benefits: The Causal Effect of Paying Higher Transfers for a Shorter Period of Time (2009)
Working Paper: Female Labor Supply and Parental Leave Benefits: The Causal Effect of Paying Higher Transfers for a Shorter Period of Time (2009)
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