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On the effect of parental leave duration on unemployment and wages

Del Rey, Elena; Racionero Llorente, Maria; Silva, Jose I.


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...[Show more]

CollectionsANU Research Publications
Date published: 2017
Type: Journal article
Source: Economics Letters
DOI: 10.1016/j.econlet.2017.06.029


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