The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries

Working Paper: CEPR ID: DP11784

Authors: Claudia Olivetti; Barbara Petrongolo

Abstract: We draw lessons from existing work and our own analysis on the effects of parental leave and other interventions aimed at aiding families. The outcomes of interest are female employment, gender gaps in earnings and fertility. We begin with a discussion of the historical introduction of family policies ever since the end of the nineteenth century and then turn to the details regarding family policies currently in effect across high-income nations. We sketch a framework concerning the effects of family policy to motivate our country- and micro-level evidence on the impact of family policies on gender outcomes. Most estimates of the impact of parental leave entitlement on female labor market outcomes range from negligible to weakly positive. The verdict is far more positive for the beneficial impact of spending on early education and childcare.

Keywords: Parental Leave; Childcare; Family Policies; Gender Gaps

JEL Codes: J13; J16; J18


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Parental leave entitlements (J22)Female labor market outcomes (J49)
Parental leave entitlements (J22)Female employment rates (J21)
Parental leave entitlements (J22)Gender earnings gaps (J31)
Parental leave entitlements (J22)Fertility rates (J13)
Longer parental leave (J22)Reduced female employment (J21)
Spending on early education and childcare (I21)Gender outcomes (J16)
Family policies design and context (J18)Female labor market participation (J21)

Back to index