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The Introduction of a Short-Term Earnings-Related Parental Leave Benefit System and Differential Effects on Employment Intentions

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  • Annette Bergemann
  • Regina T. Riphahn

Abstract

German family policy underwent a reform in 2007, when the new instrument of “Elterngeld” replaced “Erziehungsgeld.” The two programs differ in various respects. We studied the intended effects on the labor supply of young mothers by comparing these women’s employment intentions before and after the reform. We conducted separate investigations of high- and low-income women, who were treated differently under the old “Erziehungsgeld” regime, and we distinguished between the period of benefit receipt and the period after the benefits ran out. Our results mainly confirm expectations based on a labor supply model.

Suggested Citation

  • Annette Bergemann & Regina T. Riphahn, 2011. "The Introduction of a Short-Term Earnings-Related Parental Leave Benefit System and Differential Effects on Employment Intentions," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 131(2), pages 315-325.
    • Handle: RePEc:aeq:aeqsjb:v131_y2011_i2_q2_p315-325
    DOI: 10.3790/schm.131.2.315
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    Citations

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    Cited by:

    1. Miriam Maeder, 2014. "Earnings-related parental leave benefits and subjective well-being of young mothers: evidence from a German parental leave reform," Working Papers 148, Bavarian Graduate Program in Economics (BGPE).
    2. Welteke, Clara & Wrohlich, Katharina, 2019. "Peer effects in parental leave decisions," Labour Economics, Elsevier, vol. 57(C), pages 146-163.
    3. Eva M. Berger & Luke Haywood, 2016. "Locus of Control and Mothers’ Return to Employment," Journal of Human Capital, University of Chicago Press, vol. 10(4), pages 442-481.
    4. Tamm, Marcus, 2013. "The Impact of a Large Parental Leave Benefit Reform on the Timing of Birth around the Day of Implementation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 75(4), pages 585-601.
    5. Katrin Huber, 2019. "Changes in parental leave and young children’s non-cognitive skills," Review of Economics of the Household, Springer, vol. 17(1), pages 89-119, March.
    6. Tamm, Marcus, 2011. "Elterngeld: Wie geht es danach weiter? Expertise für die Geschäftsstelle zum 8. Familienbericht am ifo Institut," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72617, March.
    7. Hendrik Jürges, 2017. "Financial incentives, timing of births, and infant health: a closer look into the delivery room," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(2), pages 195-208, March.
    8. Cygan-Rehm, Kamila, 2013. "Earnings-Dependent Parental Leave Benefit and Fertility: Evidence from Germany," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80021, Verein für Socialpolitik / German Economic Association.

    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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