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By: Michael Baker and Kevin Milligan

How Does Job‐Protected Maternity Leave Affect Mothers’ Employment?. By: Michael Baker and Kevin Milligan. Goal of the Study. To examine the impact of maternity leaves on the period mothers are away from work postbirth and the likelihood they return to their prebirth employer.

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By: Michael Baker and Kevin Milligan

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  1. How Does Job‐Protected Maternity Leave Affect Mothers’ Employment? By: Michael Baker and Kevin Milligan

  2. Goal of the Study • To examine the impact of maternity leaves on the period mothers are away from work postbirth and the likelihood they return to their prebirth employer. Two key questions:1) Do leave entitlements increase the average length of time mothers spend at home with their newborns?2) Do leaves increase the proportion of mothers who return to employment with the prebirth employer?

  3. Background To Job Protected Maternity • Job‐protected maternity leave entitlements exist in many countries but vary widely in scope. • Canada- Protected from dismissal, prescribed leave that’s specified as unpaid, minimum employment for eligibility, possible extensions • Europe- leave entitlements are typically universal, long, and paid • United States- leave entitlements are typically restricted, short, and unpaid

  4. Data – Labour Force Survey • Data is based on the Labour Force Survey • Monthly survey designed to provide information on Canadian’ labour market activity. • Individuals are in a rotation group that is interviewed for six consecutive months. • Rotation is staggered, so in any month, one group is leaving while another enters.

  5. Data (continued) • First sample • Takes advantage of panel structure • Identifies females who experience a birth, and examine their labour market activity in the surrounding period. • Depending on when birth occurs, we can observe their status up to 4 months before or after. • Second sample • Time series of cross sections • Observations from April to October surveys of each year. • Target group is married adult females with a child who is less than one year old

  6. Methods • Main Regressions • One used for time period 1976 – 1990 (Introduction of short term leaves) • Another used for the expansion of longer parental leaves (1990 – 1992) and further expansion of leaves (2000 – 2001) • Strength of Results (Regressions for Robustness): • Removed federal government workers and women not eligible for maternity leave • Used two control groups who were unlikely to be affected by maternity leave reforms: married men and married childless women

  7. Key Results • The introduction of modest entitlements increases the proportion of mothers employed and on leave but has little effect on the length of time they are at home with their infants. • In contrast to the shorter leaves, longer entitlements significantly increase the period mothers are at home postbirth. • Maternity leave entitlements of all lengths studied increase job continuity with the prebirth employer

  8. Key Results • The introduction of short job‐protected maternity leaves: The 1976–90 Sample • The expansion to longer entitlements around 1990 • Further expanding to 1‐year leaves in 2001

  9. Introduction (1976 – 1990) • Staggered introduction across provinces, with leave lengths up to 18 weeks. • Findings show large effect on being “employed and on leave” but little effect on “employed and at work” suggesting that new mothers are substituting between being out of the labor force and being employed but on leave • Re-labelling of time off work

  10. Introduction (1976 – 1990) • Quebec VS. Ontario

  11. Expansion to Longer Entitlements Around 1990 • Extended the amount of job‐protected leave available to new mothers from 17–18 weeks to 29–52 weeks. • The extensions in 1990 are found to have a significant impact on being employed and at work, meaning that new mothers spent more time at home (increased time away from work) • A large proportion of women who return to their previous job would otherwise have taken part‐time employment with another employer.

  12. Expansion to Longer Entitlements Around 1990 Married mothers employed and on leave in the month of birth Married mothers employed and on leave 4 months after the month of birth

  13. One Year Leaves in 2001 • Parental leave extended to minimum of 1 year in every province • Quebec extended to 70 weeks in 1997 • 2000–2001 expansion of entitlements led to a further large increase in time away from work. (more time for mothers at home with their young children)

  14. Relevance to Labour Economics • The mandate will reduce the number of women quitting their jobs prebirth to spend time at home and clearly increase the number of women who are employed and on leave over the birth event • “Increasing women’s participation in the labour market helps pull seniors out of poverty and decreases income inequality”

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