nep-dem New Economics Papers
on Demographic Economics
Issue of 2021‒11‒08
three papers chosen by
Héctor Pifarré i Arolas
Universitat Pompeu Fabra

  1. Can parental leave be shared? By Hélène Périvier; Gregory Verdugo
  2. The Causal Impact of Taking Parental Leave on Wages: Evidence from 2005 to 2015 By Michela Bia; German Blanco; Marie Valentova
  3. The impact of supply-driven variation in time to death on the demand for health care By Laudicella, Mauro; Li Donni, Paolo

  1. By: Hélène Périvier (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po); Gregory Verdugo (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po)
    Abstract: We examine the consequences of recent policies promoting parental leave sharing using a 2015 French reform. The reform reduced the duration of mothers' paid leave to give 12 months of non transferable leave to fathers. Leave can be taken while working part-time for up to 80% of standard working hours, which can be a more attractive option for fathers. We find that the take-up rates for fathers remained low, as less than 3% of fathers took any form of leave after the reform. Surprisingly, we also find low take-up rates for fathers working part-time after the reform and for whom taking paid part-time leave would have increased their median income by 15% without requiring them to change in their labour supply. For fathers working part-time, non-take-up rates of part-time leave benefits are as high as 81% compared with less than 25% for mothers. The reform dramatically increased the annual earnings of mothers, but it had no effect on the earnings of fathers.
    Keywords: parental leave,labor supply,gender inequality
    Date: 2021
  2. By: Michela Bia; German Blanco; Marie Valentova
    Abstract: Within the context of Luxembourg, we analyze the causal effect of parental leave take up on post-birth hourly wages of an important subpopulation of parental-leave-eligible mothers, i.e., first-time mothers that are always employed regardless of having taken parental leave. In our analysis, we simultaneously address selection of eligible mothers in taking parental leave, and selection of eligible mothers into employment. To deal with the first complication, we assume that conditional on observed pre-intervention covariates there are no unobserved factors associated to both the assignment to parental leave and the potential post-birth hourly wages. To this end, we control for a rich set of pre-intervention characteristics that were obtained from Social Security administrative data from 2005 to 2010. The second complication arises since the outcome of hourly wages is only defined for the (post-birth) employed subpopulation. We deal with selection into employment by utilizing a Principal Stratification framework and recent non-parametric bounds. We argue that the monotonicity-type assumptions employed for bounding causal parameters are plausible in the context analyzed and potentially weaker than conventional alternatives. Our estimated bounds allow us to undertake inference for a subpopulation of parental-leave-eligible mothers that are always employed regardless of having taken parental leave. This subpopulation accounts for about 80 percent of all eligible mothers in our dataset. Our estimated bounds on average effects of parental leave take-up on hourly wages are consistent with important, albeit statistically insignificant, reductions in all periods analyzed (i.e., 2, 3, 4 and 5 years after birth). Interestingly, we find evidence of heterogeneous impacts of parental leave take-up across the distribution of post-birth wages. Our estimated bounds, in general, show that the quantile treatment effects of parental leave take-up on post-birth wages of always employed mothers are negative and significant in most quantiles above the median.
    Keywords: parental leave; wage; human capital; take-up
    Date: 2021–10
  3. By: Laudicella, Mauro (University of Southern Denmark, DaCHE - Danish Centre for Health Economics); Li Donni, Paolo (University of Palermo, Department of Economics, Business and Statistics)
    Abstract: Many high-income countries have successfully reduced hospital mortality in several acute health conditions. We test the hypothesis that variation in the supply of care directed to saving the life of individuals with a health shock may result in increasing the demand for health care as individuals are likely to contribute to the demand after surviving the health shock. We examined repeated cross-sections of individuals exposed to an AMI or a stroke over a time window of ten years in Denmark. Hospital survival probabilities in the interval 0- 30 days from the shock are used as an indicator of the supply, while individual health care expenditure in the interval 31-365 days is used as an indicator of the demand. We find the demand is highly elastic to supply-driven variation in time to death. Results are robust to a placebo test on individuals exposed to the shock without entering time to death.
    Keywords: Health care demand; Hospital quality of care; Time to death
    JEL: I10
    Date: 2021–10–28

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