Parental Leave from the Firm’s Perspective

Micro Seminar
Man and pregnant sitting on a bench with baby shoes in their hands
Speaker
Gözde Corekcioglu Ishakoglu
Date
Friday 4 Oct 2024, 12:00 - 13:15
Type
Seminar
Room
T3-07
Building
Mandeville Building
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Man and pregnant sitting on a bench with baby shoes in their hands

In this study, we investigate firm-side responses to absence from work, specifically due to parental leave. Our primary focus is on firms’ adjustments in the gender and age composition of their workforce. Using detailed matched employer-employee data and a shift-share identification strategy, we leverage variation in exposure and shocks across firms due to several reforms that extended paid parental leave duration in Norway. 

Joint work with Marco Francesconi (Essex) and Astrid Kunze (Norwegian School of Economics)

Our preliminary findings indicate that in response to longer parental leave-related absence, firms with higher intensity of exposure increased employment of young female workers without altering total employment of other workers. 

We further show that a non-negligible part of the observed employment growth is accounted for by an inflow of young women in part-time jobs, while changes in contractual hours and overtime hours worked do not play a significant role. These adjustments on the firms' labor force are reflected in higher investment and sales, and a significant reduction in the firms' wage bill. Overall, firms appear to have strategically adapted to young women’s work interruptions linked to longer parental leave that has so far been an overlooked outcome in labour markets.

About the speaker

Gözde is Assistant Professor of Economics at Ozyegin University and a Research Affiliate at the Institute for the Study of Labor (IZA). Her fields of research are applied microeconomics, organization economics, gender economics, and political economy. Her recent work focuses on transforming workplace climate (including very interesting field experiments with organizations), and female leadership in organizations. Her work has been published in the Quarterly Journal of Economics, European Economic Review, Journal of Comparative Economics, Journal of Politics, etc.   

Registration

If you would like to have a bilateral or join the speaker for lunch or dinner on Friday, please send an email to boring@ese.eur.nl

See also

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