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Duration of Parental Leave and Women's Employment

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  • Kim, Jungho

    (Ajou University)

Abstract

The impact of the duration of parental leave on women's employment in Korea is examined by focusing on the heterogeneous effects. The results of the extension of the maximum job-protected leave from 12 months to 15 months are as follows. First, the policy change led to more female employees taking leave more often and for longer periods. The impact of leave take-up on high wage earners is found to be smaller than that on their low wage counterparts, but that on duration is larger; this points to a fixed cost in switching between own and paid child care. Further, those in large firms tend to benefit more than those in small- or medium-sized firms. Second, the extension encouraged women to return to work 2–3 years after childbirth, but this effect diminished after 4 years. The findings suggest that the distributional effect should be considered in designing leave policy.

Suggested Citation

  • Kim, Jungho, 2018. "Duration of Parental Leave and Women's Employment," IZA Discussion Papers 11383, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11383
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    References listed on IDEAS

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    1. Rafael Lalive & Analía Schlosser & Andreas Steinhauer & Josef Zweimüller, 2014. "Parental Leave and Mothers' Careers: The Relative Importance of Job Protection and Cash Benefits," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 219-265.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    parental leave; female labor supply; timing of childbearing; natural experiment;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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