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On the effect of parental leave duration on unemployment and wages

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

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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]

dc.contributor.authorDel Rey, Elena
dc.contributor.authorRacionero Llorente, Maria
dc.contributor.authorSilva, Jose I.
dc.date.accessioned2021-08-24T00:42:48Z
dc.identifier.issn0165-1765
dc.identifier.urihttp://hdl.handle.net/1885/245012
dc.description.abstractWe 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.
dc.description.sponsorshipThis work was supported by the Australian Research Council Discovery Project funding scheme [project number DP130103580]; the Institute of Fiscal Studies (Ministry of Finances, Spain); the Spanish Ministry of Economy and Competitiveness [grant ECO2016-76255-P]; the Autonomous Government of Catalonia [grants 2014SGR-1360 and 2014SGR-239, and XREPP — Research Reference Network for Economics and Public Policies-]; and the Autonomous Government of Valencia [grant AICO/2016/38].
dc.format.mimetypeapplication/pdf
dc.language.isoen_AU
dc.publisherElsevier
dc.rights© 2017 Elsevier B.V
dc.sourceEconomics Letters
dc.subjectParental leave
dc.subjectSearch and matching
dc.titleOn the effect of parental leave duration on unemployment and wages
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolume158
dc.date.issued2017
local.identifier.absfor140211 - Labour Economics
local.identifier.ariespublicationa383154xPUB8552
local.publisher.urlhttps://www.elsevier.com/en-au
local.type.statusPublished Version
local.contributor.affiliationDel Rey, Elena, Universitat de Girona
local.contributor.affiliationRacionero, Maria, College of Business and Economics, ANU
local.contributor.affiliationSilva, Jose I, Universitat de Girona
local.description.embargo2099-12-31
dc.relationhttp://purl.org/au-research/grants/arc/DP130103580
local.bibliographicCitation.startpage14
local.bibliographicCitation.lastpage17
local.identifier.doi10.1016/j.econlet.2017.06.029
dc.date.updated2020-11-23T10:54:12Z
local.identifier.scopusID2-s2.0-85021316681
local.identifier.thomsonID000408300300005
CollectionsANU Research Publications

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