Labour market effects of parental leave in Europe

We investigate the aggregate-level effects of parental leave legislation on various labour market outcomes of women in 16 European countries for the period between 1970 and 2010. The paper updates and extends previous findings in the literature. The results show increases in participation rates that diminish with length and generosity of leave schemes. While pure participation numbers may not increase dramatically, there is strong evidence of increases in weekly working hours. On the other hand, a decrease in wages for high-skilled women and amplified occupational segregation are possible results of long parental leave schemes. We conclude with a discussion of the recent debates over extending minimum maternity and parental leave rights on the European level. Copyright , Oxford University Press.