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Title page
Contents
Abstract 3
1. Introduction 4
2. Institutional Background 8
3. Data 9
3.1. Data Source 9
3.2. Internal and External Substitutes 11
3.3. Outcome Variables 11
3.4. Sample Selection and Descriptive Statistics 13
4. Firms' Hiring and Separation Responses to Motherhood 14
5. Effects of Extending Parental Leave Benefits on Mothers and Firms 19
5.1. Empirical Strategy 19
5.2. Effects of Extended Parental Leave Effects on Mothers and Firms 21
5.3. Effects Heterogeneity by Availability of Internal and External Substitutes 26
5.4. Effects on Replacement Hiring 28
6. Effects on Hiring Discrimination Against Women 29
7. Discussion and Conclusion 31
References 34
Appendix (For Online Publication) 38
Table 1. Summary statistics and balancing 15
Table 2. Summary of event study estimates 25
Figure 1. Firms' hiring and separations around childbirth 16
Figure 2. Firms' excess hiring by internal and external substitutes 17
Figure 3. Firms' hiring composition around childbirth 18
Figure 4. Effects on mothers' employment at their pre-birth firm by pre-birth earnings sextile 22
Figure 5. Event study of parental leave reform effects on mothers' and firms' outcomes 24
Figure 6. Short-term effects by internal substitutes 26
Figure 7. Effect of the parental leave reform on hiring in the replacement period 29
Figure 8. Longer-term effects on hiring and wages of young women 30
Table A.1. Comparison of mothers and firms in analysis sample with excluded observations 47
Table A.2. Summary statistics and balancing-upper two pre-birth earnings terciles 48
Table A.3. Summary of event study estimates (including lower earning mothers) 49
Table A.4. Event study estimates by internal substitutes 50
Table A.5. Event study estimates by external substitutes 51
Table A.6. Summary event study estimates for mothers - interaction with internal substitutes 52
Table A.7. Summary estimates by pre-birth firm size 53
Table A.8. Summary event study estimates for larger firms 54
Table A.9. Summary event study estimates for firms - interaction with internal substitutes 55
Table A.10. Summary event study estimates for firms - absolute outcomes firm 55
Table A.11. Summary event study estimates for West and East Germany 56
Figure A.1. Illustration of benefits pre-reform and post-reform 38
Figure A.2. Sample selection process 39
Figure A.3. Firm and workgroup size of analysis sample 40
Figure A.4. Firms' hirings and separations by birth semester 40
Figure A.5. Firms' hiring shares around childbirth 41
Figure A.6. Specification checks 42
Figure A.7. Return to pre-birth firm, by availability of internal substitutes 43
Figure A.8. Event study of parental leave reform effects on mothers', different workgroup size definitions 43
Figure A.9. Combination of firm and workgroup size 44
Figure A.10. Longer-term effects of hiring childless women under 30 by internal substitutes 44
Figure A.11. Longer-term effects of hiring of young women-firms without births 45
Figure A.12. Hiring patterns of women over time 46
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