IDEAS home Printed from https://ideas.repec.org/a/spr/joprea/v41y2024i4d10.1007_s12546-024-09342-1.html
   My bibliography  Save this article

Varying responses to the introduction of earnings-related benefits: a study of 2004 parental leave reform in Estonia

Author

Listed:
  • Sanan Abdullayev

    (Tallinn University)

  • Allan Puur

    (Tallinn University)

Abstract

Paid parental leave has become a part of family policies in an increasing number of Western societies. Parental leave benefits may create varying incentives which can lead to heterogeneous fertility responses. The aim of this study is to examine whether and how the changes in second- and third-order fertility associated with the 2004 parental leave reform in Estonia vary depending on mothers’ education and ethnic background. The study draws on data from Estonian administrative registers on women born between 1960 and 1999, who had their first or second child between 1993 and 2014. Mixture cure models are estimated for the transitions to second and third births. We find that women with high educational attainment exhibit a stronger response, both in terms of accelerating the tempo and increasing the quantum of fertility, to the introduction of earnings-related parental leave benefits, than their counterparts with less schooling. In terms of fertility quantum, Estonian women show a stronger response than women from other ethnic groups. Regarding the tempo of childbearing, the results pertaining to ethnic differences are mixed. The study suggests that changes in fertility behavior associated with the introduction of earnings-related parental leave benefits are more pronounced among women with higher opportunity costs.

Suggested Citation

  • Sanan Abdullayev & Allan Puur, 2024. "Varying responses to the introduction of earnings-related benefits: a study of 2004 parental leave reform in Estonia," Journal of Population Research, Springer, vol. 41(4), pages 1-31, December.
    • Handle: RePEc:spr:joprea:v:41:y:2024:i:4:d:10.1007_s12546-024-09342-1
    DOI: 10.1007/s12546-024-09342-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12546-024-09342-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12546-024-09342-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Janna Bergsvik & Agnes Fauske & Rannveig Kaldager Hart, 2021. "Can Policies Stall the Fertility Fall? A Systematic Review of the (Quasi‐) Experimental Literature," Population and Development Review, The Population Council, Inc., vol. 47(4), pages 913-964, December.
    2. Peter McDonald, 2000. "Gender Equity in Theories of Fertility Transition," Population and Development Review, The Population Council, Inc., vol. 26(3), pages 427-439, September.
    3. Jochen Kluve & Marcus Tamm, 2013. "Parental leave regulations, mothers’ labor force attachment and fathers’ childcare involvement: evidence from a natural experiment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 983-1005, July.
    4. Malte Sandner & Frederik Wiynck, 2023. "The Fertility Response to Cutting Child-Related Welfare Benefits," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(2), pages 1-29, April.
    5. Vincent Bremhorst & Michaela Kreyenfeld & Philippe Lambert, 2016. "Fertility progression in Germany: An analysis using flexible nonparametric cure survival models," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(18), pages 505-534.
    6. Spiess, C.Katharina & Wrohlich, Katharina, 2008. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27, pages 575-591.
    7. Allan Puur & Martin Klesment, 2011. "Signs Of A Stable Or Provisional Increase In Fertility? Reflections On Developments In Estonia," Demográfia English Edition, Hungarian Demographic Research Institute, vol. 54(5), pages 31-55.
    8. Raute, Anna, 2019. "Can financial incentives reduce the baby gap? Evidence from a reform in maternity leave benefits," Journal of Public Economics, Elsevier, vol. 169(C), pages 203-222.
    9. Frances Goldscheider & Eva Bernhardt & Trude Lappegård, 2015. "The Gender Revolution: A Framework for Understanding Changing Family and Demographic Behavior," Population and Development Review, The Population Council, Inc., vol. 41(2), pages 207-239, June.
    10. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    11. Chiara Ludovica Comolli, 2017. "The fertility response to the Great Recession in Europe and the United States: Structural economic conditions and perceived economic uncertainty," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 36(51), pages 1549-1600.
    12. Gunnar Andersson & Jan M. Hoem & Ann-Zofie Duvander, 2006. "Social differentials in speed-premium effects in childbearing in Sweden," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 14(4), pages 51-70.
    13. repec:cai:poeine:pope_203_0417 is not listed on IDEAS
    14. Annette Bergemann & Regina Riphahn, 2011. "Female labour supply and parental leave benefits - the causal effect of paying higher transfers for a shorter period of time," Applied Economics Letters, Taylor & Francis Journals, vol. 18(1), pages 17-20.
    15. Kamila Cygan-Rehm, 2016. "Parental leave benefit and differential fertility responses: evidence from a German reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 73-103, January.
    16. Holger Stichnoth, 2020. "Short-run fertility effects of parental leave benefits: evidence from a structural model," Empirical Economics, Springer, vol. 59(1), pages 143-168, July.
    17. Peter Mcdonald, 2006. "Low Fertility and the State: The Efficacy of Policy," Population and Development Review, The Population Council, Inc., vol. 32(3), pages 485-510, September.
    18. Allan Puur & Leen Rahnu & Liili Abuladze & Luule Sakkeus & Sergei Zakharov, 2017. "Childbearing among first- and second-generation Russians in Estonia against the background of the sending and host countries," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 36(41), pages 1209-1254.
    19. Allan Puur & Sanan Abdullayev & Martin Klesment & Mark Gortfelder, 2023. "Parental Leave and Fertility: Individual-Level Responses in the Tempo and Quantum of Second and Third Births," European Journal of Population, Springer;European Association for Population Studies, vol. 39(1), pages 1-28, December.
    20. Anna Matysiak & Tomáš Sobotka & Daniele Vignoli, 2021. "The Great Recession and Fertility in Europe: A Sub-national Analysis," European Journal of Population, Springer;European Association for Population Studies, vol. 37(1), pages 29-64, March.
    21. Hill Kulu & Amparo González-Ferrer, 2014. "Family Dynamics Among Immigrants and Their Descendants in Europe: Current Research and Opportunities," European Journal of Population, Springer;European Association for Population Studies, vol. 30(4), pages 411-435, November.
    22. Adeline Otto & Alzbeta Bártová & Wim Van Lancker, 2021. "Measuring the Generosity of Parental Leave Policies," Social Inclusion, Cogitatio Press, vol. 9(2), pages 238-249.
    23. Ewa Cukrowska-Torzewska & Magdalena Grabowska, 2023. "The sex preference for children in Europe: Children’s sex and the probability and timing of births," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 48(8), pages 203-232.
    24. Mikko Myrskylä & Joshua R. Goldstein & Yen-hsin Alice Cheng, 2013. "New Cohort Fertility Forecasts for the Developed World: Rises, Falls, and Reversals," Population and Development Review, The Population Council, Inc., vol. 39(1), pages 31-56, March.
    25. Anne Gauthier, 2007. "The impact of family policies on fertility in industrialized countries: a review of the literature," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 26(3), pages 323-346, June.
    26. Rafael Lalive & Josef Zweimüller, 2009. "How Does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1363-1402.
    27. Bremhorst, Vincent & Kreyenfeld, Michaela & Lambert, Philippe, 2016. "Fertility progression in Germany: An analysis using flexible nonparametric cure survival models," LIDAM Reprints ISBA 2016023, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    28. Hill Kulu, 2005. "Migration and Fertility: Competing Hypotheses Re-examined," European Journal of Population, Springer;European Association for Population Studies, vol. 21(1), pages 51-87, March.
    29. Vitor Miranda, 2020. "Recent Trends in Birth Intervals in Sweden: A Decline of the Speed-Premium Effect?," European Journal of Population, Springer;European Association for Population Studies, vol. 36(3), pages 499-510, July.
    30. Gerda Neyer & Gunnar Andersson, 2008. "Consequences of Family Policies on Childbearing Behavior: Effects or Artifacts?," Population and Development Review, The Population Council, Inc., vol. 34(4), pages 699-724, December.
    31. Mark Gortfelder & Allan Puur, 2020. "Survival and sex composition of offspring: Individual-level responses in the quantum and tempo of childbearing during the demographic transition," Population Studies, Taylor & Francis Journals, vol. 74(2), pages 161-177, June.
    32. Anna Šťastná & Jiřina Kocourková & Branislav Šprocha, 2020. "Parental Leave Policies and Second Births: A Comparison of Czechia and Slovakia," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(3), pages 415-437, June.
    33. Colin Cannonier, 2014. "Does the Family and Medical Leave Act (FMLA) Increase Fertility Behavior?," Journal of Labor Research, Springer, vol. 35(2), pages 105-132, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Allan Puur & Sanan Abdullayev & Martin Klesment & Mark Gortfelder, 2023. "Parental Leave and Fertility: Individual-Level Responses in the Tempo and Quantum of Second and Third Births," European Journal of Population, Springer;European Association for Population Studies, vol. 39(1), pages 1-28, December.
    2. Jac Thomas & Francisco Rowe & Paul Williamson & Eric S. Lin, 2022. "The effect of leave policies on increasing fertility: a systematic review," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-16, December.
    3. Jennifer Glass & Carolyn E. Waldrep, 2023. "Child Allowances and Work-Family Reconciliation Policies: What Best Reduces Child Poverty and Gender Inequality While Enabling Desired Fertility?," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(5), pages 1-57, October.
    4. Janna Bergsvik & Agnes Fauske & Rannveig Kaldager Hart, 2021. "Can Policies Stall the Fertility Fall? A Systematic Review of the (Quasi‐) Experimental Literature," Population and Development Review, The Population Council, Inc., vol. 47(4), pages 913-964, December.
    5. 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.
    6. Nicoletta Balbo & Francesco C. Billari & Melinda Mills, 2013. "Fertility in Advanced Societies: A Review of Research," European Journal of Population, Springer;European Association for Population Studies, vol. 29(1), pages 1-38, February.
    7. Huebener, Mathias & Kuehnle, Daniel & Spiess, C. Katharina, 2019. "Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data," Labour Economics, Elsevier, vol. 61(C).
    8. Kamila Cygan-Rehm, 2016. "Parental leave benefit and differential fertility responses: evidence from a German reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 73-103, January.
    9. Jonas Wood & Sebastian Klüsener & Karel Neels & Mikko Myrskylä, 2017. "Is a positive link between human development and fertility attainable? Insights from the Belgian vanguard case," MPIDR Working Papers WP-2017-014, Max Planck Institute for Demographic Research, Rostock, Germany.
    10. Micaela Bassford & Hayley Fisher, 2020. "The Impact of Paid Parental Leave on Fertility Intentions," The Economic Record, The Economic Society of Australia, vol. 96(315), pages 402-430, December.
    11. Fleckenstein, Timo & Lee, Soohyun Christine & Mohun Himmelweit, Sam, 2023. "Labour market dualization, permanent insecurity and fertility: the case of ultra-low fertility in South Korea," LSE Research Online Documents on Economics 117935, London School of Economics and Political Science, LSE Library.
    12. 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.
    13. Girsberger, Esther Mirjam & Hassani-Nezhad, Lena & Karunanethy, Kalaivani & Lalive, Rafael, 2023. "Mothers at work: How mandating a short maternity leave affects work and fertility," Labour Economics, Elsevier, vol. 84(C).
    14. Ansgar Hudde, 2018. "Societal Agreement on Gender Role Attitudes and Childlessness in 38 Countries," European Journal of Population, Springer;European Association for Population Studies, vol. 34(5), pages 745-767, December.
    15. David E. Bloom & Michael Kuhn & Klaus Prettner, 2024. "Fertility in High-Income Countries: Trends, Patterns, Determinants, and Consequences," Annual Review of Economics, Annual Reviews, vol. 16(1), pages 159-184, August.
    16. Sunnee Billingsley & Gerda Neyer & Katharina Wesolowski, 2022. "Social Investment Policies and Childbearing Across 20 Countries: Longitudinal and Micro-Level Analyses," European Journal of Population, Springer;European Association for Population Studies, vol. 38(5), pages 951-974, December.
    17. Janna Bergsvik & Agnes Fauske & Rannveig K. Hart, 2020. "Effects of policy on fertility. A systematic review of (quasi)experiments," Discussion Papers 922, Statistics Norway, Research Department.
    18. Hudde, Ansgar, 2016. "Fertility Is Low When There Is No Societal Agreement on a Specific Gender Role Model," EconStor Preprints 142175, ZBW - Leibniz Information Centre for Economics.
    19. Tudor, Simona, 2020. "Financial incentives, fertility and early life child outcomes," Labour Economics, Elsevier, vol. 64(C).
    20. C. Katharina Spieß, 2011. "Vereinbarkeit von Familie und Beruf – wie wirksam sind deutsche „Care Policies“?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 4-27, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joprea:v:41:y:2024:i:4:d:10.1007_s12546-024-09342-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.