Becoming a mompreneur: Parental leave policies and mothers' propensity for self-employment
Ruud Gerards and
No 25, Research Memorandum from Maastricht University, Graduate School of Business and Economics (GSBE)
Contractionary parental leave policy reforms decrease the time mothers can stay at home after giving birth. This might discourage them to become an entrepreneur. Exploiting a German parental leave policy reform, we apply a regression discontinuity approach to establish a causal relationship between parental leave policies and the probability for mothers to become entrepreneurs (i.e., “mompreneurs”). We find that a decrease in the generosity of parental leave lowers the odds of mothers to become self-employed by 17%. We show additional evidence that suggests that this is particularly due to the reduced period of paid parental leave.
Keywords: female entrepreneurship; mompreneurs; parental leave; policy reform; female labor supply (search for similar items in EconPapers)
JEL-codes: H31 J10 J20 L26 (search for similar items in EconPapers)
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Working Paper: Becoming a mompreneur: Parental leave policies and mothers' propensity for self-employment (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umagsb:2018025
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