Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319114 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17845
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
How do firms adjust their labor demand when a female employee takes temporary leave after childbirth? Using Austrian administrative data, we compare firms with and without a birth event and exploit policy reforms that significantly altered leave durations. We find that (i) firms adjust hiring, employment, and wages around leave periods, but these effects fade quickly; (ii) adjustments differ sharply by gender, reflecting strong gender segregation within firms; (iii) longer leave entitlements extend actual leave absences but have only short-term effects; and (iv) there is no impact on firm closure up to five years after birth.
Subjects: 
absence duration
gender
labor demand
labor supply
firms
family leave
JEL: 
H2
H5
J2
J08
J13
Document Type: 
Working Paper

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