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The Impact of Parental Leave Policy on Child-Rearing and Employment Behavior: The Case of Germany


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Figure 1

Employment rates of females aged 25–54 years by age of the youngest child, 2012.Source: Calculations based on data from the Organisation for Economic Co-operation and Development (OECD) Family Database 2012. Online at: http://www.oecd.org/els/family/database.htm
Employment rates of females aged 25–54 years by age of the youngest child, 2012.Source: Calculations based on data from the Organisation for Economic Co-operation and Development (OECD) Family Database 2012. Online at: http://www.oecd.org/els/family/database.htm

Figure 2

Employment rates of females aged 25–54 years by age of the youngest child, 2006.Source: Calculations based on data from the OECD Family Database 2012. Online at: http://www.oecd.org/els/family/database.htm
Employment rates of females aged 25–54 years by age of the youngest child, 2006.Source: Calculations based on data from the OECD Family Database 2012. Online at: http://www.oecd.org/els/family/database.htm

Figure 3

Relationship between maternal employment and child enrollment in formal child care, 2012.Source: Calculations based on data from European Union Statistics on Income and Living Conditions (EU-SILC) survey 2012. Online at: https://ec.europa.eu/eurostat/web/income-and-living-conditions/data/database
Relationship between maternal employment and child enrollment in formal child care, 2012.Source: Calculations based on data from European Union Statistics on Income and Living Conditions (EU-SILC) survey 2012. Online at: https://ec.europa.eu/eurostat/web/income-and-living-conditions/data/database

Figure 4

Maternity benefits in pre- and postreformed period.Source: Calculations based on data from GSOEP survey v34.
Maternity benefits in pre- and postreformed period.Source: Calculations based on data from GSOEP survey v34.

Average marginal effects for maternal childcare decision

Leave yearParticipationFull-timePart-time
First year0.315***0.321***0.257***0.269***0.265***0.262***
(0.077)(0.071)(0.062)(0.060)(0.061)(0.065)
Second year1.066***1.010***1.295***1.267***1.233***1.287***
(0.244)(0.253)(0.244)(0.252)(0.233)(0.236)
Third year0.6000.626*1.125***0.832**0.798**0.587
(0.489)(0.343)(0.146)(0.411)(0.381)(0.381)

Excess of demand to public childcare for children younger than three years, 2012–2015

Region2012201320142015
Baden-Württemberg13.713.911.411.0
Bayern8.611.08.39.2
Berlin13.39.47.57.6
Brandenburg4.17.74.14.5
Bremen19.516.611.014.1
Hamburg9.49.27.48.5
Hessen14.216.110.610.0
Mecklenburg-Vorpommern6.86.65.26.5
Niedersachsen13.213.010.411.3
Nordrhein-Westfalen15.815.29.613.3
Rheinland-Pfalz13.114.412.511.8
Saarland12.914.310.111.1
Sachsen6.17.94.86.1
Sachsen-Anhalt3.34.84.54.3
Schleswig-Holstein10.613.013.512.2
Thüringen3.84.34.84.3
Germany11.812.49.210.2

Average marginal effects for maternal labor outcome

VariableParticipationFull-timePart-time
Panel A: first year of motherhood
Policy-0.058 (0.006)-0.067 (0.049)-0.022 (0.040)-0.033 (0.043)-0.041 (0.031)-0.038 (0.037)
Employment before birth0.108*** (0.021)0.108*** (0.020)0.064* (0.025)0.066*** (0.025)0.047*** (0.005)0.047*** (0.018)
Policy*employment before birth0.042 (0.047)0.047 (0.052)0.026 (0.043)0.032 (0.046)0.021 (0.038)0.020 (0.041)
Childcare formal0.065 (0.155)0.113* (0.064)-0.024 (0.123)
Rho0.513*** (0.046)0.378 (0.344)0.380*** (0.068)-0.126 (0.288)0.348*** (0.083)-0.432 (0.432)
Observations1,7481,7481,7481,7481,7481,748
Panel B: second year of motherhood
Policy0.199*** (0.062)0.080 (0.061)0.082*** (0.026)0.064** (0.027)0.086 (0.068)0.033 (0.059)
Employment before birth0.134*** (0.015)0.063** (0.032)0.077*** (0.029)0.069*** (0.025)0.070** (0.011)0.046 (0.007)
Policy*employment before birth-0.041 (0.071)-0.018 (0.055)-0.070** (0.039)-0.068* (0.039)-0.0005 (0.075)0.007 (0.070)
Childcare formal0.409*** (0.045)0.111*** (0.105)0.258*** (0.069)
Rho0.589*** (0.055)-0.526 (0.274)0.366*** (0.118)-0.229 (0.440)0.403*** (0.041)-0.239 (0.202)
Observations1,5321,5321,5321,5321,5321,532
Panel C: third year of motherhood
Policy-0.038 (0.010)-0.032 (0.067)0.004 (0.038)-0.006 (0.044)-0.025 (0.072)-0.043 (0.056)
Employment before birth0.135*** (0.034)0.048** (0.029)0.026 (0.023)0.018 (0.027)0.110*** (0.026)0.040 (0.035)
Policy*employment before birth0.068 (0.102)0.068 (0.077)-0.024 (0.041)-0.024 (0.047)0.054 (0.060)0.039 (0.043)
Childcare formal0.447*** (0.027)0.101 (0.099)0.414*** (0.055)
Rho0.370*** (0.078)-0.938* (0.124)0.446*** (0.122)-0.223 (0.476)0.241*** (0.066)-0.909** (0.118)
Observations933933933933933933
ControlsYesYesYesYesYesYes

Average marginal effects for maternal childcare decision: high-income category

DecisionParticipationFull-timePart-time
Employment decisionPanel A: first year of motherhood
Policy-0.340***-0.330*-0.802***-0.732***-0.191***-0.194***
(0.067)(0.183)(0.138)(0.101)(0.042)(0.045)
Employment before-0.0170.0280.0410.055-0.140.012
birth(0.070)(0.068)(0.059)(0.069)(0.054)(0.048)
Policy*employment0.280***0.2690.806***0.716***0.1430.149***
before birth(0.070)(0.180)(0.142)(0.106)(0.045)(0.049)
Childcare formal0.503***0.1230.262**
(0.191)(0.279)(0.134)
Childcare decision
Childcare coverage0.2100.283*0.1950.1910.1540.196**
(0.161)(0.152)(0.136)(0.152)(0.146)(0.082)
Rho0.597***0.6150.496***0.0550.372**-0.479
(0.071)(0.751)(0.105)(1.079)(0.146)(0.417)
Observations839839839839839839
Employment decisionPanel B: second year of motherhood
Policy0.501***0.393**0.627***0.0300.258**0.194**
(0.139)(0.197)(0.216)(0.076)(0.112)(0.096)
Employment before0.327**0.339**0.614***0.0350.1720.187*
birth(0.142)(0.157)(0.215)(0.078)(0.114)(0.108)
Policy*employment-0.357***-0.322**-0.649***-0.074-0.142-0.123
before birth(0.120)(0.132)(0.219)(0.093)(0.103)(0.088)
Childcare formal0.379**0.222***0.261
(0.148)(0.39)(0.179)
Childcare decision
Childcare coverage1.138***1.447***1.397***1.457***1.276***1.420***
(0.334)(0.356)(0.341)(0.068)(0.325)(0.332)
Rho0.697***-0.0130.382**-0.7430.526**0.023
(0.035)(0.597)(0.163)(0.467)(0.056)(0.437)
Observations735735735735735735

Public childcare enrollment rates for children younger than three years, 2006–2015

Region2006200720082009201020112012201320142015
Baden-Württemberg8.711.513.615.818.320.823.124.927.827.8
Bayern8.210.713.215.718.520.623.024.827.127.5
Berlin37.839.840.441.542.141.942.643.746.045.9
Brandenburg40.443.444.848.351.051.653.453.657.856.8
Bremen9.210.512.713.716.119.621.223.226.927.1
Hamburg21.022.020.122.228.532.435.838.443.043.3
Hessen9.012.414.216.319.321.523.725.728.829.7
Mecklenburg- Vorpommern43.144.144.949.550.751.753.654.556.156.0
Niedersachsen5.16.99.111.915.818.622.124.427.928.3
Nordrhein-Westfalen6.56.99.311.514.015.918.119.923.825.8
Rheinland-Pfalz9.412.015.017.520.124.727.028.230.630.6
Saarland10.212.114.115.117.720.222.124.627.028.3
Sachsen33.534.636.540.142.844.146.447.249.950.6
Sachsen-Anhalt50.251.852.755.155.956.157.557.758.357.9
Schleswig-Holstein7.58.211.614.318.121.624.226.330.331.4
Thüringen37.937.538.942.845.146.949.851.452.452.3
Germany13.615.517.620.223.025.527.629.332.332.9

Average marginal effects for maternal childcare decision: low-income category

DecisionParticipationFull-timePart-time
Employment decisionPanel A: first year of motherhood
Policy0.0160.0250.0060.0030.0050.010
(0.035)(0.048)(0.022)(0.024)(0.032)(0.043)
Employment before0.098***0.100***0.040***0.039***0.044*0.041
birth(0.024)(0.024)(0.015)(0.014)(0.024)(0.031)
Policy*employment0.001-0.003-0.002-0.00040.0070.029
before birth(0.055)(0.054)(0.020)(0.020)(0.050)(0.065)
Childcare formal-0.0820.032-0.195
(0.207)(0.068)(0.370)
Childcare decision
Childcare coverage0.324***0.314***0.303***0.308***0.326***0.196**
(0.048)(0.064)(0.056)(0.065)(0.057)(0.082)
Rho0.482***0.6870.259*0.0430.406**0.652
(0.139)(0.555)(0.135)(0.450)(0.169)(0.432)
Observations909909909909909909
Employment decisionPanel B: second year of motherhood
Policy0.079***0.0150.053***0.038*0.008-0.017
(0.072)(0.064)(0.026)(0.023)(0.060)(0.060)
Employment before0.042-0.0170.041*0.0240.011-0.009
birth(0.039)(0.036)(0.023)(0.018)(0.033)(0.036)
Policy*employment0.0540.062-0.008-0.0060.0100.013
before birth(0.092)(0.080)(0.032)(0.035)(0.077)(0.103)
Childcare formal0.395***0.1800.182*
(0.062)(0.124)(0.103)
Childcare decision
Childcare coverage0.672***0.513**1.023***0.865***0.993***0.985***
(0.244)(0.240)(0.178)(0.215)(0.169)(0.180)
Rho0.436***-0.8300.353**-0.7430.167**-0.405
(0.107)(0.246)(0.139)(0.467)(0.079)(0.231)
Observations797797797797797797

Summary statistics: employment and childcare decision

VariableFirst year of motherhoodSecond year of motherhoodThird year of motherhood
Before 2007After 2007Mean testBefore 2007After 2007Mean testBefore 2007After 2007Mean test
(1)(2)(2)-(l)(3)(4)(4)-(3)(5)(6)(6)-(5)
2006-2007Panel A
Employment0.125 (0.332)0.198 (0.401)0.073 (0.052)0.329 (0.473)0.298 (0.462)-0.031 (0.083)0.238 (0.431)0.147 (0.359)-0.091 (0.092)
Employment full-time0.0650 (0.248)0.0833 (0.278)0.018 (0.035)0.0674 (0.252)0.0617 (0.242)-0.006 (0.038)0.0556 (0.231)0.0444 (0.208)-0.011 (0.045)
Employment part-time0.0488 (0.216)0.111 (0.316)0.062* (0.035)0.202 (0.404)0.160 (0.369)-0.042 (0.060)0.130 (0.339)0.0667 (0.252)-0.063 (0.061)
Formal childcare0.0407 (0.198)0.130 (0.337)0.089** (0.036)0.292 (0.457)0.247 (0.434)-0.045 (0.069)0.500 (0.505)0.422 (0.499)-0.078 (0.101)
Public childcare0.0407 (0.198)0.0741 (0.263)0.033 (0.030)0.225 (0.420)0.173 (0.380)-0.052 (0.062)0.444 (0.502)0.422 (0.499)-0.022 (0.101)
Home childcare0.691 (0.464)0.759 (0.430)0.068 (0.059)0.270 (0.446)0.519 (0.503)0.249*** (0.073)0.852 (0.359)0.844 (0.367)-0.007 (0.073)
Nanny childcare0.0163 (0.127)0.0648 (0.247)0.049* (0.025)0.0674 (0.252)0.0988 (0.300)0.031 (0.042)0.426 (0.499)0.356 (0.484)-0.070 (0.099)
Sample size23117099
2005-2008Panel B
Employment0.161 (0.368)0.150 (0.358)-0.010 (0.036)0.251 (0.435)0.345 (0.477)0.094* (0.048)0.225 (0.420)0.146 (0.354) -0.080* (0.048)
Employment full-time0.0674 (0.251)0.0588 (0.236)-0.009 (0.023)0.0429 (0.203)0.0754 (0.264)0.033 (0.022)0.0455 (0.209)0.0246 (0.155)-0.021 (0.020)
Employment part-time0.0816 (0.274)0.0784 (0.270)-0.003 (0.025)0.162 (0.369)0.167 (0.374)0.005 (0.033)0.129 (0.336)0.0936 (0.292)-0.035 (0.035)
Formal childcare0.0461 (0.210)0.123 (0.329)0.076*** (0.024)0.271 (0.446)0.403 (0.491)0.132*** (0.042)0.439 (0.498)0.463 (0.500)0.024 (0.056)
Public childcare0.0319 (0.176)0.0637 (0.245)0.032* (0.019)0.214 (0.411)0.321 (0.468)0.107*** (0.040)0.402 (0.492)0.438 (0.497)0.037 (0.055)
Home childcare0.709 (0.455)0.730 (0.445)0.021 (0.041)0.295 (0.457)0.626 (0.485)0.331*** (0.042)0.833 (0.374)0.842 (0.365)0.009 (0.041)
Nanny childcare0.0248 (0.156)0.0686 (0.253)0.044** (0.019)0.0619 (0.242)0.275 (0.447)0.214*** (0.034)0.348 (0.478)0.433 (0.497)0.085 (0.055)
Sample size486515335
2002-2011Panel C
Employment0.168 (0.374)0.139 (0.346)-0.029 (0.019)0.207 (0.405)0.371 (0.484)0.164*** (0.026)0.218 (0.413)0.196 (0.398)-0.021 (0.030)
Employment full-time0.0624 (0.242)0.0531 (0.224)-0.009 (0.011)0.0519 (0.222)0.0886 (0.284)0.037*** (0.013)0.0437 (0.205)0.0331 (0.179)-0.011 (0.013)
Employment part-time0.0930 (0.291)0.0681 (0.252)-0.025* (0.013)0.132 (0.339)0.182 (0.386)0.050*** (0.019)0.140 (0.347)0.121 (0.327)-0.018 (0.022)
Formal childcare0.0635 (0.244)0.103 (0.304)0.039***0.228 (0.420)0.393 (0.489)0.164*** (0.024)0.448 (0.498)0.472 (0.500)0.024 (0.033)
(0.013)
Public childcare0.0442 (0.206)0.0716 (0.258)0.027** (0.011)0.188 (0.391)0.312 (0.464)0.124*** (0.022)0.417 (0.494)0.439 (0.497)0.023 (0.032)
Home childcare0.786 (0.411)0.756 (0.430)-0.029 (0.020)0.355 (0.479)0.599 (0.490)0.244*** (0.025)0.854 (0.353)0.850 (0.358)-0.004 (0.023)
Nanny childcare0.0510 (0.220)0.0647 (0.246)0.014 (0.011)0.0534 (0.225)0.245 (0.430)0.191*** (0.018)0.369 (0.483)0.437 (0.497)0.068** (0.032)
Sample size1,7481,532

Summary statistics

Observational2006-20072005-20082002-2011
periodBefore 2007After 2007Mean testBefore 2007After 2007Mean testBefore 2007After 2007Mean test
Personal characteristics(1)(2)(2)-(1)(3)(4)(4)-(3)(5)(6)(6)-(5)
Age30.34 (4.919)31.27 (5.109)0.932 (0.674)30.91 (5.090)31.27 (5.173)0.352 (0.398)30.93 (5.060)31.43 (5.174)0.503* (0.288)
Education12.64 (2.563)13.11 (2.256)0.462 (0.329)12.79 (2.646)13.28 (2.711)0.493*** (0.181)12.81 (2.700)13.27 (2.717)0.456*** (0.132)
Married0.715 (0.453)0.593 (0.494)-0.123** (0.062)0.687 (0.464)0.658 (0.475)-0.029 (0.031)0.722 (0.448)0.648 (0.478)-0.074*** (0.022)
Cohabiting0.228 (0.421)0.278 (0.450)0.050 (0.057)0.248 (0.433)0.247 (0.432)-0.002 (0.029)0.213 (0.410)0.252 (0.434)0.039* (0.020)
Child gender0.504 (0.502)0.491 (0.502)-0.013 (0.066)0.481 (0.500)0.524 (0.500)0.043 (0.033)0.497 (0.500)0.509 (0.500)0.013 (0.024)
First child0.797 (0.404)0.722 (0.450)-0.075 (0.056)0.674 (0.469)0.831 (0.375)0.157*** (0.028)0.583 (0.493)0.844 (0.363)0.261*** (0.021)
Labor characteristics before birth
Employment0.776 (0.419)0.750 (0.435)-0.026 (0.057)0.734 (0.442)0.787 (0.410)0.053 (0.034)0.674 (0.469)0.711 (0.454)0.038 (0.027)
Employment0.190 (0.394)0.148 (0.357)-0.042 (0.050)0.191 (0.394)0.144 (0.352)-0.047 (0.030)0.180 (0.384)0.119 (0.324)-0.061*** (0.021)
part-time
Employment0.526 (0.501)0.463 (0.501)-0.063 (0.067)0.474 (0.500)0.555 (0.498)0.081** (0.039)0.420 (0.494)0.511 (0.500)0.091*** (0.029)
full-time
Labor income18,667.419,154.3486.862 (2,252.418)18,928.521,143.32,214.814*17,619.321,148.23,528.880***
(15,390.2)(18,279.5)(16,312.5)(16,526.4)(1,290.415)(16,733.1)(16,066.2)(964.485)
Household labor48,008.447,542.4 -466.088 (4,448.715)53,433.749,731.1-3,702.66251,668.850,556.0-1,112.802
income(31,253.0)(35,309.4)(35,113.0)(33,150.1)(2,705.036)(34,682.5)(33,508.7)(2,003.282)
Partner characteristics
Age33.94 (6.496)34.45 (5.950)0.510 (0.932)34.13 (5.836)34.75 (5.808)0.615 (0.502)33.96 (5.750)34.48 (5.853)0.519 (0.366)
Education12.55 (2.683)13.04 (2.661)0.485 (0.398)12.77 (2.860)13.03 (2.826)0.264 (0.211)12.82 (2.956)13.00 (2.849)0.185 (0.157)
Other characteristics
Parental leave421.7 (381.5)712.6 (518.5)290.913*** (76.575)402.3 (397.3)741.3 (486.5)338.955***391.7 (290.4)768.2 (466.0)376.446***
benefits per(52.111)(24.073)
month
Parental leave2,823.14,984.32,161.185***3,164.14,978.91,814.857***3,293.84,899.01,605.207***
benefits per year(1,629.5)(4,393.4)(491.531)(2,593.8)(4,161.6)(360.541)(2,661.2)(3,792.3)(186.716)
Childcare0.178 (0.143)0.222 (0.145)0.044** (0.019)0.171 (0.146)0.237 (0.137)0.065*** (0.009)0.162 (0.144)0.250 (0.134)0.087*** (0.007)
coverage
Sample size4869131,748