There is no compelling evidence that extended parental leave rights have a positive impact on female employment, according to research by Claudia Olivetti and Barbara Petrongolo, which analyses the labour market effects of family-oriented policies ? such as parental leave, childcare support and flexible work arrangements ? in 30 OECD countries over 45 years. Their study finds that job-protected parental leave entitlements up to 18 months are associated with better female employment and wage outcomes. But longer and more generously paid parental leave entitlements may be detrimental to female employment, especially for the less skilled. Making it easier to be a working mother, via subsidised childcare, leads to better labour market outcomes than extending parental leave.

---

29 June 2018     Paper Number CEPCP533

Download PDF - Economic consequences of family policies

This CentrePiece article is published under the centre's Labour programme.