The Response of Firms to Maternity Leave and Sickness Absence

Arbeitspapier

We study how firms respond to predictable, but uncertain, worker absences arising from maternity and non-work-related sickness leave. Using administrative data on over 1.5 million spells of leave in Brazil, we identify the short-run effects of a leave spell starting on firms' employment, hiring, and separations. Firms respond immediately by increasing hiring, but the increase is substantially less than one-for-one replacement. Hiring responses are more pronounced for absences arising in occupations with more transferable skills and in firms operating in thicker labor markets. Overall, our results imply that using external markets is costly and firms manage absences through other channels.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 15336

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Labor Force and Employment, Size, and Structure ; Labor Turnover; Vacancies; Layoffs ; Mobility, Unemployment, and Vacancies: Public Policy ; Fertility; Family Planning; Child Care; Children; Youth
• Subject: employment determination ; hires ; job turnover ; maternity leave ; sick leave

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schmutte, Ian M. ; Skira, Meghan
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/263552
• Last update: 10.03.2025, 11:44 AM CET