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November 22, 2017

Cluster-Seminar Public Finances and Living Conditions

The Effect of Parental Leave Policies in Frictional Labor Markets


November 22, 2017
12:30 - 13:30


DIW Berlin im Quartier 110
Room 5.2.010
Mohrenstraße 58
10117 Berlin


Sascha Drahs

I analyze the impact of labor market risks on fertility and female labor supply in a dynamic structural life-cycle model. In particular, I provide insights on whether parental leave policies, such as legal job protection periods, can mitigate these risks. To this end, I estimate a dynamic discrete choice model, using a rich German panel dataset, for the time period between 2007 and 2013. Preliminary findings suggest a strong impact of parental leave job protection on fertility.

A current version of the working paper can be downloaded from here