On the effect of parental leave duration on unemployment and wages

Elena Del Rey; Maria Racionero; Jose I. Silva

doi:10.1016/j.econlet.2017.06.029

On the effect of parental leave duration on unemployment and wages

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

^*Corresponding author for this work

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

7 Citations (Scopus)

Abstract

We introduce parental leave policies in a labor search and matching model and study the effect of leave duration on unemployment and wages. We show that the effects are ambiguous and depend on whether the net benefit of the leave for the worker relative to her bargaining power is larger than the net benefit of the leave for the firm relative to its bargaining power. Our results suggest that simulated labor market outcomes in search and matching models may be sensitive to the calibration of these key parameters of the model.

Original language	English
Pages (from-to)	14-17
Number of pages	4
Journal	Economics Letters
Volume	158
DOIs	https://doi.org/10.1016/j.econlet.2017.06.029
Publication status	Published - Sept 2017

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title = "On the effect of parental leave duration on unemployment and wages",

abstract = "We introduce parental leave policies in a labor search and matching model and study the effect of leave duration on unemployment and wages. We show that the effects are ambiguous and depend on whether the net benefit of the leave for the worker relative to her bargaining power is larger than the net benefit of the leave for the firm relative to its bargaining power. Our results suggest that simulated labor market outcomes in search and matching models may be sensitive to the calibration of these key parameters of the model.",

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AU - Racionero, Maria

AU - Silva, Jose I.

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N2 - We introduce parental leave policies in a labor search and matching model and study the effect of leave duration on unemployment and wages. We show that the effects are ambiguous and depend on whether the net benefit of the leave for the worker relative to her bargaining power is larger than the net benefit of the leave for the firm relative to its bargaining power. Our results suggest that simulated labor market outcomes in search and matching models may be sensitive to the calibration of these key parameters of the model.

AB - We introduce parental leave policies in a labor search and matching model and study the effect of leave duration on unemployment and wages. We show that the effects are ambiguous and depend on whether the net benefit of the leave for the worker relative to her bargaining power is larger than the net benefit of the leave for the firm relative to its bargaining power. Our results suggest that simulated labor market outcomes in search and matching models may be sensitive to the calibration of these key parameters of the model.

KW - Parental leave

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DO - 10.1016/j.econlet.2017.06.029

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JO - Economics Letters

JF - Economics Letters

ER -

On the effect of parental leave duration on unemployment and wages

Abstract

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