Costs of employment and flexible labour demand: Evidence from maternity and parental leave reforms (VOX)

One factor exacerbating gender gaps in employment is the cost of affording maternity and parental leave to women as primary caregivers. This column analyses the relationship between the costs of providing parental leave and labour demand for childbearing-age women. As evidenced by a series of reforms in Japan in the last two decades, reducing the burden of parental leave costs from firms to social insurance systems increases both labour demand and starting wages for such workers.

https://voxeu.org/article/costs-employment-and-flexible-labour-demand

Yukiko Asai

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