The Effects of Parental Leave Policies: Evidence from Twelve Countries

Grantee

Jonas Jessen, Social Science Center Berlin (WZB), Institut für Arbeitsmarkt- und Berufsforschung (IAB), IZA, Center for Economic Studies ifo, and Berlin School of Economics
Anne Sophie Lassen, Social Science Center Berlin (WZB), Berlin School of Economics, and Copenhagen Business School
Valeria Zurla, University of Naples Federico II, Centre for Studies in Economics and Finance, and The University of Texas at Austin Population Wellbeing Initiative

Grant Type

Early Career Research Award

Publication Date

3-30-2026

Description

We study the labor-market effects of parental leave policies using a harmonized cross-country research design spanning twelve countries and nearly five decades of policy reforms. While a large literature evaluates parental leave expansions, existing evidence is difficult to compare across settings due to heterogeneity in institutions, data, and empirical methods. We address this limitation by applying identical definitions, samples, and quasi-experimental designs to high-quality administrative data from Europe and the United States. Exploiting sharp policy discontinuities around childbirth, we will estimate dynamic effects of changes in paid leave duration, replacement rates, and job protection on mothers’ employment and earnings in the short and long run. The harmonized framework is ideal for understanding the differential policy effects across countries. We translate reform-specific estimates into welfare impacts using the Marginal Value of Public Funds framework. Relating the estimated effects to measures of gender norms, childcare availability, and labor-market institutions, we show to what extent institutional context is associated with the effectiveness of parental leave policies in reducing gender inequality. This will provide the first truly comparable evidence on parental leave reforms across countries and offer guidance for the design of family policies.