Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock

34 Pages Posted: 29 Jun 2013

See all articles by Emma Tominey

Emma Tominey

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Abstract

Female labor supply can insure households against shocks to paternal employment. The paper estimates whether the female labor supply response to a paternal employment shock differs by eligibility to maternity employment protection. We exploit time-state variation in the implementation of unpaid maternity leave through the Family and Medical Leave Act (FMLA) in the US which increased employment protection from 0 to 12 weeks. We find that mothers eligible for FMLA speed up their return to work in response to a paternal shock, with a conditional probability of being in work 53% higher than in households with no paternal shock. In contrast, there was a negligible insurance response for mothers with no employment protection.

Keywords: female labor supply, insurance, maternity leave

JEL Classification: I30, J13, J20, J64

Suggested Citation

Tominey, Emma, Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock. Available at SSRN: https://ssrn.com/abstract=2287072 or http://dx.doi.org/10.2139/ssrn.2287072

Emma Tominey (Contact Author)

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom
+44 117 928 9019 (Phone)

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