Career Breaks after Childbirth: The Impact of Family Leave Reforms in the Czech Republic
59 Pages Posted: 22 Aug 2016
The Czech Republic is a country with a strong attachment of women to the labor market, but with one of the longest paid family leaves, which is often followed by a spell of unemployment. Using a difference-in-differences methodology, we study the impact of two reforms of the duration of the parental allowance on the labor market status of mothers 2 to 7 years after childbirth. While the 1995 reform prolonged the allowance from 3 to 4 years, the 2008 reform allowed some parents to shorten the duration of the allowance to only 2 or 3 years with an equivalent total monetary amount. The impact of the reforms on the length of women's career breaks following childbirth is substantial.
Keywords: family leave, female labor supply, unemployment, policy evaluation
JEL Classification: J13, J18, J22
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