Arbeitspapier

Too Family Friendly? The Consequences of Parent Part-Time Working Rights

We use a difference-in-differences model with individual fixed effects to evaluate a 1999 Spanish law granting employment protection to workers with children younger than 6 who had asked for a shorter workweek due to family responsibilities. Our analysis shows that well- intended policies can potentially backfire and aggravate labor market inequalities between men and women, since there is a very gendered take-up, with only women typically requesting part-time work. After the law was enacted, employers were 49% less likely to hire women of childbearing age, 40% more likely to separate from them, and 37% less likely to promote them to permanent contracts, increasing female non-employment by 4% to 8% relative to men of similar age. The results are similar using older women unaffected by the law as a comparison group. Moreover, the law penalized all women of childbearing age, even those who did not have children. These effects were largest in low-skill jobs, at firms with less than 10 employees, and in industries with few part-time workers. These findings are robust to several sensitivity analyses and placebo tests.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 14548

Classification
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Economics of Gender; Non-labor Discrimination
Demographic Economics: Public Policy
Job, Occupational, and Intergenerational Mobility; Promotion
Subject
female employment transitions and wages
compositional bias
fixed-term and permanent contract employment

Event
Geistige Schöpfung
(who)
Fernández-Kranz, Daniel
Rodríguez-Planas, Núria
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2021

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Fernández-Kranz, Daniel
  • Rodríguez-Planas, Núria
  • Institute of Labor Economics (IZA)

Time of origin

  • 2021

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