Macroeconomic Effects of Maternity Leave Legislation in Emerging Economies

52 Pages Posted: 12 Mar 2018 Last revised: 3 Apr 2021

See all articles by Erkmen Giray Aslim

Erkmen Giray Aslim

Grand Valley State University - Seidman School of Business

Irina Panovska

University of Texas at Dallas

M. Anıl Taş

Bilkent University

Date Written: April 2, 2021

Abstract

This study evaluates the relationships between maternity leave duration, female and male labor force participation, and aggregate productivity in emerging countries. We build a comprehensive maternity leave data set for a panel of emerging countries at annual frequency, augmenting publicly available data on maternity leave with narrative evidence that identifies the exact dates when legislative changes to maternity leave policies were enacted and enforced. Maternity leave is associated with positive but limited effects on female labor force participation, but it is associated with significant increases in male labor force participation. There is some evidence that increases in maternity leave duration are associated with decreases in productivity in the short run, primarily driven by the duration channel where long leave leads to temporary declines in productivity, but there are no significant adverse effects at longer horizons.

Keywords: labor force participation, female labor force participation, maternity leave

JEL Classification: J11, J08, J16, E24

Suggested Citation

Aslim, Erkmen Giray and Panovska, Irina and Taş, M. Anıl, Macroeconomic Effects of Maternity Leave Legislation in Emerging Economies (April 2, 2021). Economic Modelling, Forthcoming , Available at SSRN: https://ssrn.com/abstract=3136631 or http://dx.doi.org/10.2139/ssrn.3136631

Erkmen Giray Aslim (Contact Author)

Grand Valley State University - Seidman School of Business ( email )

Grand Rapids, MI 49504
United States

Irina Panovska

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

M. Anıl Taş

Bilkent University ( email )

Bilkent, Ankara 06800
Turkey

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