Employer responses to family leave programs

Rita Ginja, Arizo Karimi and Pengpeng Xia ()
Additional contact information
Pengpeng Xia: Yale University, Postal: Department of Economics, Yale University.

No 2020:18, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: Search frictions make worker turnover costly to firms. A three-month parental l eave 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 prebirth 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
Date: 2020-11-02
New Economics Papers: this item is included in nep-bec, nep-eur, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
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:ifauwp:2020_018

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