[Journal:] Zeitschrift für ArbeitsmarktForschung – Journal for Labour Market Research [ISSN:] 2510-5027 [Volume:] 38 [Year:] 2005 [Issue:] 2/3 [Pages:] 341-356
It has often been discussed whether institutional regulations aimed at protecting specific groups of the labour market have indeed succeeded in achieving the intended goal or whether they have actually aggravated the labour market position of these groups. In our paper we analyse German maternity and parental leave regulations, concentrating on potentially negative implications of these regulations on the labour market position of mothers and young women respectively. We identify three main cost components that might influence the employment and wage position of young women: costs of wage subsidies borne by the employers during maternity leave, costs of human capital depreciation during maternity and parental leave and costs of reorganisation. We summarise empirical evidence regarding these aspects and conclude with legal and political implications concerning the improvement of the employment situation of women.