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Direct and Cross Effects of Employment Protection: The Case of Parental Childcare

Direct and Cross Effects of Employment Protection: The Case of Parental Childcare I examine whether employment protection affects the willingness of working parents to provide childcare. Using a reform that made it easier for employers to dismiss workers in small firms, I find that softer employment protection reduces the use of temporary parental leave among directly treated fathers. In addition, I find that households respond to an increase in the dismissal risk by reducing temporary parental leave for the indirectly treated spouse. Spousal labor supply can thus serve as informal insurance against adverse income shocks. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Scandinavian Journal of Economics Wiley

Direct and Cross Effects of Employment Protection: The Case of Parental Childcare

The Scandinavian Journal of Economics , Volume 119 (4) – Oct 1, 2017

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References (36)

Publisher
Wiley
Copyright
© 2017 The editors of The Scandinavian Journal of Economics.
ISSN
0347-0520
eISSN
1467-9442
DOI
10.1111/sjoe.12193
Publisher site
See Article on Publisher Site

Abstract

I examine whether employment protection affects the willingness of working parents to provide childcare. Using a reform that made it easier for employers to dismiss workers in small firms, I find that softer employment protection reduces the use of temporary parental leave among directly treated fathers. In addition, I find that households respond to an increase in the dismissal risk by reducing temporary parental leave for the indirectly treated spouse. Spousal labor supply can thus serve as informal insurance against adverse income shocks.

Journal

The Scandinavian Journal of EconomicsWiley

Published: Oct 1, 2017

Keywords: ; ; ; ;

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