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The Effect of Paid Maternity Leave on Fertility and Mothers’ Labor Force Participation

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  • Andra Hiriscau

    (William & Mary, Department of Economics)

Abstract

This study examines how paid maternity leave (ML) impacted fertility and mothers’ labor force participation in Romania. The ML gives mothers the right to paid leave until the child turns one year old, and it offers $${65{\%}}$$ 65 % of monthly income before birth. I examine the effects of this policy change using a regression discontinuity design and census data. I show that mothers who are eligible for ML are 2.5 percentage-points more likely to have an additional child than those ineligible. The effect is persistent for seven years after the policy was implemented. I find no significant results regarding the mother’s labor force participation. These results have important implications regarding the shrinking working-age population and the ability to fund benefits programs.

Suggested Citation

  • Andra Hiriscau, 2024. "The Effect of Paid Maternity Leave on Fertility and Mothers’ Labor Force Participation," Journal of Labor Research, Springer, vol. 45(3), pages 350-384, September.
    • Handle: RePEc:spr:jlabre:v:45:y:2024:i:3:d:10.1007_s12122-024-09361-0
    DOI: 10.1007/s12122-024-09361-0
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    More about this item

    Keywords

    Paid maternity leave; Fertility; Women labor force participation;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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