Anne Ardila Brenøe
Institutional Affiliation: University of Zurich
Information about this author at RePEc
NBER Working Papers and Publications
|January 2020||Is Parental Leave Costly for Firms and Coworkers?|
with , , : w26622
Most existing evidence on the effectiveness of family leave policies comes from studies focusing on their impacts on affected families - mothers, fathers, and their children - without a clear understanding of the costs and effects on firms and coworkers. We estimate the effect of a female employee giving birth and taking parental leave on small firms and coworkers in Denmark. Using a dynamic difference-in-differences design, we compare small firms in which a female employee is about to give birth to an observationally equivalent sample of small firms with female employees who are not close to giving birth. Identification rests on a parallel trends assumption, which we substantiate through a set of natural validity checks. We find little evidence that parental leave take-up has negative eff...