Female labour supply and parental leave benefits - the causal effect of paying higher transfers for a shorter period of time

Annette Bergemann, Regina T. Riphahn

Research output: Contribution to journalArticle (Academic Journal)peer-review

20 Citations (Scopus)

Abstract

We study the labour supply effects of a major change in child-subsidy policy in Germany in 2007 designed to increase both 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 2 years to a benefit system that replaced two-thirds of pre-birth earnings for at most 1 year. As the reform took place very recently, we estimate the labour supply effect by using data drawn from the German Socio-Economic Panel (GSOEP) on the intention of women to return to the labour market. Our results show that the reform yields most of the intended effects: the fraction of mothers who plan to return to the labour market within a year after the interview increased by 14 percentage points.

Original languageEnglish
Pages (from-to)17-20
Number of pages4
JournalApplied Economics Letters
Volume18
Issue number1
DOIs
Publication statusPublished - Jan 2011

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