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This paper provides evidence on child penalties in female and male earnings in different countries. The estimates are based on event studies around the birth of the first child, using the specification proposed by Kleven et al. (2018). The analysis reveals some striking similarities in the qualitative effects of children across countries, but also sharp differences in the magnitude of the effects. We discuss the potential role of family policies (parental leave and childcare provision) and gender norms in explaining the observed differences.

By the early 21st century, most high-income countries have put into effect a host of generous and virtually gender-neutral parental leave policies and family benefits, with the multiple goals of gender equity, higher fertility, and child development. What have been the effects? Proponents typically emphasize the contribution of family policies to the goals of gender equity and child development, enabling women to combine careers and motherhood, and altering social norms regarding gender roles. Opponents often warn that family policies may become a long-term hindrance to women's careers because of the loss of work experience and the higher costs to employers that hire women of childbearing age. We draw lessons from existing work and our own analysis on the effects of parental leave and other interventions aimed at aiding families. We present country- and micro-level evidence on the effects of family policy on gender outcomes, focusing on female employment, gender gaps in earnings, and fertility. Most estimates range from negligible to a small positive impact. But the verdict is far more positive for the beneficial impact of spending on early education and child care.

We estimate peer effects in paid paternity leave in Norway using a regression discontinuity design. Coworkers and brothers are 11 and 15 percentage points, respectively, more likely to take paternity leave if their peer was exogenously induced to take up leave. The most likely mechanism is information transmission, including increased knowledge of how an employer will react. The estimated peer effect snowballs over time, as the first peer interacts with a second peer, the second peer with a third, and so on. This leads to long-run participation rates which are substantially higher than would otherwise be expected.

We study a change in maternity leave entitlements in Norway. Mothers giving birth before July 1, 1977, were eligible for 12 weeks of unpaid leave, while those giving birth after that date were entitled to 4 months of paid leave and 12 months of unpaid leave. The increased time spent with the child led to a 2 percentage point decline in high school dropout rates and a 5 percent increase in wages at age 30. These effects were larger for the children of mothers who, in the absence of the reform, would have taken very low levels of unpaid leave.

This study investigates whether increased availability of low-cost, state-subsidized childcare for under 3-year-olds in Germany is associated with shorter employment interruptions amongst mothers. By focusing on a major childcare reform in East and West Germany, we examine the effect in two contexts that differ markedly in the acceptance and use of formal childcare and maternal employment. We combine rich longitudinal data from the German Socio-Economic Panel (2006–2014) with annual administrative county-level data on the availability of low-cost, state-subsidized childcare, estimating event history models. The results indicate that increased childcare availability for under 3-year-olds reduces mothers’ employment interruptions, particularly after a second childbirth, and increases the probability of returning to part-time or full-time employment as opposed to marginal employment. Furthermore, increased availability of low-cost, state-subsidized childcare increases mothers’ likelihood of returning to employment in the second year after childbirth, when paid leave entitlements expire and the availability of childcare becomes important. However, our results are only statistically significant for West German mothers and only after the birth of a second child. The study extends the literature on women’s return-to-work behaviour by providing evidence on the medium-term impact of family policy on the duration of mothers’ employment interruptions.

This article analyzes the impact of five major expansions in maternity leave coverage in Germany on mothers’ labor market outcomes after childbirth. To identify the causal impact of the reforms, we use a difference-in-difference design that compares labor market outcomes of mothers who give birth shortly before and shortly after a change in maternity leave legislation in years of policy changes and years when no changes have taken place. Each expansion in leave coverage reduced mothers’ postbirth employment rates in the short run. The longer-run effects of the expansions on mothers’ postbirth labor market outcomes are, however, small.

Although researchers generally agree that national family policies play a role in shaping mothers’ employment, there is considerable debate about whether, how, and why policy effects vary across country contexts and within countries by mothers’ educational attainment. We hypothesize that family policies interact with national levels of earnings inequality to differentially affect mothers’ employment outcomes by educational attainment. We develop hypotheses about the two most commonly studied family policies—early childhood education and care (ECEC) and paid parental leave. We test these hypotheses by establishing a novel linkage between the EU-Labour Force Survey and the Current Population Survey 1999 to 2016 (n = 23 countries, 299 country-years, 1.2 million mothers of young children), combined with an original collection of country-year indicators. Using multilevel models, we find that ECEC spending is associated with a greater likelihood of maternal employment, but the association is strongest for non-college-educated mothers in high-inequality settings. The length of paid parental leave over six months is generally associated with a lower likelihood of maternal employment, but the association is most pronounced for mothers in high-inequality settings. We call for greater attention to the role of earnings inequality in shaping mothers’ employment and conditioning policy effects.

Search frictions make worker turnover costly to firms. A three-month parental leave expansion in Sweden provides exogenous variation that we use to quantify firms’ adjustment costs upon worker absence. The reform increased women’s leave duration and likelihood of separating from pre-birth employers. Firms with greater exposure to the reform hired additional workers and increased coworkers to make it coworkers’ hours, incurring wage costs corresponding to 10 full-time equivalent months in addition to replacing the workers. These adjustment costs varied by firms’ availability of internal substitutes. We also analyze a daddy-month reform and find similar employer responses to male workers’ leave, albeit smaller in magnitude.

I analyze the effects of short-duration paid parental leave on maternal labor supply. Using monthly longitudinal data from the Survey of Income and Program Participation, my event-study research design estimates impacts of paid leave laws in California and New Jersey on women's labor-force outcomes around childbirth. I find that paid leave laws are associated with a substantial increase in labor-force attachment in the months directly around birth. While US-style short-duration leave is unlikely to change prolonged exits from the labor force, my findings imply that paid leave laws induce some women stay more attached to jobs, particularly low-skill women.