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The Impact of Parental Leave Duration on Later Wages

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  • Laurent Lequien

Abstract

We investigate the existence of a causal relationship running from parental leave duration to subsequent wages. We exploit a French policy which gives financial incentives to take a parental leave. This policy was at first targeted towards parents of a third-born child. We use the extension to parents of a second-born child in 1994 as an exogenous shock on parental leave duration. Two administrative datasets provide us with information on wages and familial background from 1976 to 2005. We first show that this reform did induce many mothers to withdraw from the labor market in the 3 years following the birth. We then turn to career development after the return to work: estimations in double differences suggest that interruption duration would have a negative causal impact on wages after the return to work. Part of this wage loss could be due to a decrease in the number of hours worked per day.

Suggested Citation

  • Laurent Lequien, 2012. "The Impact of Parental Leave Duration on Later Wages," Annals of Economics and Statistics, GENES, issue 107-108, pages 267-285.
    • Handle: RePEc:adr:anecst:y:2012:i:107-108:p:267-285
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    Cited by:

    1. Branko Bošković & Harriet Churchill & Oriola Hamzallari, 2021. "Family Policy and Child Well-Being: The Case of Montenegro in the European Perspective," IJERPH, MDPI, vol. 18(17), pages 1-13, August.
    2. Elira Kuka & Na'ama Shenhav, 2024. "Long-Run Effects of Incentivizing Work after Childbirth," American Economic Review, American Economic Association, vol. 114(6), pages 1692-1722, June.
    3. Rita Ginja & Arizo Karimi & Pengpeng Xiao, 2023. "Employer Responses to Family Leave Programs," American Economic Journal: Applied Economics, American Economic Association, vol. 15(1), pages 107-135, January.
    4. Joseph, Olivier & Pailhé, Ariane & Recotillet, Isabelle & Solaz, Anne, 2013. "The economic impact of taking short parental leave: Evaluation of a French reform," Labour Economics, Elsevier, vol. 25(C), pages 63-75.
    5. Canaan, Serena, 2022. "Parental leave, household specialization and children’s well-being," Labour Economics, Elsevier, vol. 75(C).
    6. repec:spo:wpmain:info:hdl:2441/7lfmtcll678th9ldbi6o2t0onk is not listed on IDEAS
    7. Dominique Meurs & Pierre Porra, 2019. "Gender Equality on the Labour Market in France: A Slow Convergence Hampered by Motherhood," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 510-511-5, pages 109-130.
    8. Clément Carbonnier, 2021. "Family-Based Tax and Transfer System – Issues for Income Tax and Other Public Policies," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 526-527, pages 41-48.
    9. Sarah H. Bana & Kelly Bedard & Maya Rossin‐Slater, 2020. "The Impacts of Paid Family Leave Benefits: Regression Kink Evidence from California Administrative Data," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(4), pages 888-929, September.
    10. Mathieu Narcy & Florent Sari, 2018. "Effet d'une réduction de la durée d'indemnisation du congé parental sur l'activité des mères : une évaluation de la réforme de 2015," Working Papers hal-02162446, HAL.
    11. Bruno Rodrigues & Vincent Vergnat, 2019. "The time and the transitions back to work in France after maternity," Review of Economics of the Household, Springer, vol. 17(3), pages 861-888, September.
    12. Carole Bonnet & Bertrand Garbinti & Anne Solaz, 2022. "Does Part-Time Mothering Help Get a Job? The Role of Shared Custody in Women’s Employment," European Journal of Population, Springer;European Association for Population Studies, vol. 38(5), pages 885-913, December.
    13. Brenøe, Anne Ardila & Canaan, Serena & Harmon, Nikolaj & Royer, Heather, 2019. "Is Parental Leave Costly for Firms and Coworkers?," IZA Discussion Papers 12870, Institute of Labor Economics (IZA).
    14. Chia Jung Chang, 2021. "Is the Road to Unemployment Paved with Good Intentions? Labor Market Outcomes of Young Women," Journal of Labor Research, Springer, vol. 42(2), pages 244-302, June.
    15. Marc Jourdain Muizon, 2020. "Subsidies for parental leave and formal childcare: be careful what you wish for," Review of Economics of the Household, Springer, vol. 18(3), pages 735-772, September.
    16. Petra Persson & Maya Rossin-Slater, 2019. "When Dad Can Stay Home: Fathers' Workplace Flexibility and Maternal Health," NBER Working Papers 25902, National Bureau of Economic Research, Inc.
    17. Ginja, Rita & Jans, Jenny & Karimi, Arizo, 2017. "Parental Investments in Early Life and Child Outcomes: Evidence from Swedish Parental Leave Rules," IZA Discussion Papers 11106, Institute of Labor Economics (IZA).
    18. Rossin-Slater, Maya, 2017. "Maternity and Family Leave Policy," IZA Discussion Papers 10500, Institute of Labor Economics (IZA).
    19. Clément Carbonnier, 2014. "The influence of taxes on employment of married women, evidence from the French joint income tax system," Working Papers hal-03460526, HAL.
    20. Amélie Speiser, 2021. "Back to work: the effect of a long-term career interruption on subsequent wages in Switzerland," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 157(1), pages 1-14, December.
    21. Courtney Coile & Maya Rossin-Slater & Amanda Su, 2022. "The Impact of Paid Family Leave on Families with Health Shocks," NBER Working Papers 30739, National Bureau of Economic Research, Inc.
    22. repec:hal:spmain:info:hdl:2441/7lfmtcll678th9ldbi6o2t0onk is not listed on IDEAS
    23. Maya Rossin-Slater, 2017. "Maternity and Family Leave Policy," NBER Working Papers 23069, National Bureau of Economic Research, Inc.
    24. Zhang, Chi & Managi, Shunsuke, 2020. "Functional social support and maternal stress: A study on the 2017 paid parental leave reform in Japan," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 153-172.

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