The Effect of Paid Maternity Leave Reformation on Korean Women’s Labor Supply

Abstract This study examines the impact of changes in two major paid family leave policies on female labor force participation in Korea. Using Regression Discontinuity (RD) methods and five datasets spanning the period from 2007 to 2018, this paper investigates the impact of paid parental leave policy reforms on labor force attachment and log wages. The findings suggest that the 2012 extension of paid parental leave made it more challenging for mothers to return to work after giving birth, resulting in a significant decrease in labor market attachment compared to the policy amendments in 2007 and 2014. JEL Classification: H4 , J08 , J13 , J16