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Title:Female labor supply and parental leave benefits: The causal effect of paying higher transfers for a shorter period of time PDF Logo
Authors:Bergemann, Annette
Riphahn, Regina T.
Issue Date:2009
Series/Report no.:Working paper // IFAU - Institute for Labour Market Policy Evaluation 2009:5
Abstract:We study the labor supply effects of a major change in child-subsidy policy in Germany in 2007 designed to both increase fertility and shorten birth-related employment interruptions. The reform involved a move from a means-tested maternity leave benefit system that paid a maximum of 300 Euro for up to two years to an income dependent benefit system that replaced two third of the pre-birth income for at most one year. As the reform took place very recently, we estimate the labor supply effect by using data drawn from the German Socio-Economic Panel on the intention of women to return to the labor market; notably whether women are likely to return and whether they intend to return quickly. Our results show that the reform yields most of the intended effects: The fraction of mothers who responded that they were going to return to the labor market within a year since the interview increased by 14 percentage points.
Subjects:Female labor supply
fertility
child subsidy
parents money
JEL:J13
J21
Document Type:Working Paper
Appears in Collections:Working Papers, IFAU - Institute for Evaluation of Labour Market and Education Policy

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