| Abstract: |
This paper constructs and estimates a dynamic discrete choice structural model
of female employment and fertility decisions that incorporates job protection
and cash benefits of parental leave legislation. The estimated structural
model is used for ex ante evaluation of policy reforms that change the
duration of job protection and/or the arrangement for cash benefits.
Counterfactual simulations indicate that introducing an initial one-year job
protection policy increases maternal employment significantly, but extending
the existing job protection period from one to three years has little effect.
The employment effects of cash benefits also seem modest. Overall, parental
leave policies have little effect on fertility. |