Labour market effects of reducing the gender gap in parental leave entitlements

Elena Del Rey; Maria Racionero; Jose I. Silva

doi:10.1016/j.labeco.2021.102036

Labour market effects of reducing the gender gap in parental leave entitlements

Elena Del Rey^*, Maria Racionero, Jose I. Silva

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

We explore the effects of parental leave entitlements for mothers and fathers on wages and employment. We consider male and female workers who compete for the same jobs in a labour search and matching model with endogenous job search and leave take-up rates. We identify key theoretical effects and calibrate the model to simulate policy changes in France, Italy, Norway and Portugal. Reducing the gap in parental leave entitlements reduces gender wage gaps and increases gender employment rate gaps in these countries. Leave take-up rates increase with paid leave duration. In general, we find that job search intensity decreases when longer paid leave duration decreases wages.

Original language	English
Article number	102036
Journal	Labour Economics
Volume	72
DOIs	https://doi.org/10.1016/j.labeco.2021.102036
Publication status	Published - Oct 2021

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10.1016/j.labeco.2021.102036

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abstract = "We explore the effects of parental leave entitlements for mothers and fathers on wages and employment. We consider male and female workers who compete for the same jobs in a labour search and matching model with endogenous job search and leave take-up rates. We identify key theoretical effects and calibrate the model to simulate policy changes in France, Italy, Norway and Portugal. Reducing the gap in parental leave entitlements reduces gender wage gaps and increases gender employment rate gaps in these countries. Leave take-up rates increase with paid leave duration. In general, we find that job search intensity decreases when longer paid leave duration decreases wages.",

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AB - We explore the effects of parental leave entitlements for mothers and fathers on wages and employment. We consider male and female workers who compete for the same jobs in a labour search and matching model with endogenous job search and leave take-up rates. We identify key theoretical effects and calibrate the model to simulate policy changes in France, Italy, Norway and Portugal. Reducing the gap in parental leave entitlements reduces gender wage gaps and increases gender employment rate gaps in these countries. Leave take-up rates increase with paid leave duration. In general, we find that job search intensity decreases when longer paid leave duration decreases wages.

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Labour market effects of reducing the gender gap in parental leave entitlements

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