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Does a Flexible Parental Leave System Stimulate Maternal Employment?

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  • Ziegler, Lennart

    (University of Vienna)

  • Bamieh, Omar

    (University of Vienna)

Abstract

This study examines the effect of two recent parental leave reforms in Austria that allow parents to choose leave schemes with varying duration. Using a regression discontinuity design, we find that the introduction of more flexible scheme choices led mothers to take, on average, 1-2 months less of leave. This decrease in leave duration, however, was not accompanied by an employment increase of similar magnitude. To understand the absence of labor supply effects, we examine data on work preferences from the Austrian Microcensus. Child care duties are cited as the primary reason for not seeking work but few mothers indicate that they would start working if better access to formal childcare were available. Switching to the more flexible leave system had a minimal effect on the labor market choices of mothers, as the majority continue to prioritize child care responsibilities and do not consider nurseries as a desirable alternative.

Suggested Citation

  • Ziegler, Lennart & Bamieh, Omar, 2023. "Does a Flexible Parental Leave System Stimulate Maternal Employment?," IZA Discussion Papers 16172, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16172
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    More about this item

    Keywords

    parental leave; gender differences; child care; financial incentives; labor supply; return to work;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • 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
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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