SRRD_2019_21.pdf (1.24 MB)
A Family Leave Length Trade-off? Women’s Labour Force Status in Comparative Perspective
Abstract: A frequently cited aim of parental leave policies is to
provide parents with the opportunity to combine work and family. The
availability of additional childcare leaves prolongs mothers’ time out of the
labour market, however, and thus may counteract women’s labour market
participation. This study is the first to differentiate between the whole range
of labour force status outcomes: employment, unemployment and inactivity. Using
data for 20 countries from the Luxembourg Income Study, this study examines the
relationship between paid family leave length and mothers’ labour market
status. Calling on multinomial logistic regression with country fixed effects,
this study finds that the provision of comparatively long paid family leave is
associated with increased unemployment risks among mothers of 0 to 15-year
olds. A slight peak when children are 4 to 6 years old and when leave is longer
than two years suggests that mothers are most vulnerable when they re-enter the
labour market after a longer leave. These results are in line with prominent
theories of human capital depreciation, signalling or statistical
discrimination. Leaves of over one year, on the other hand, are associated with
reduced inactivity amongst mothers. Hence, results indicate a trade-off when it
comes to leave length. Shorter leaves are associated with mothers dropping out
of the labour market, especially when children are young, while longer family
leaves are associated with increased unemployment risks.