| Abstract: | The authors measure the effects of paid maternity leave upon infant mortality, the labor force participation of women during their prime childbearing years, and fertility rates. To reach their conclusions, they constructed a simultaneous-equations model using the individual fixed-effects method and a data set comprising 17 OECD countries and four time periods. The extension of maternal leave programs, measured in terms of duration of paid leave, is shown to reduce infant mortality, to raise rates of labor force participation for women in the prime childbearing ages, and to increase birth rates. The direct plus indirect impacts of extending maternity leave programs, as revealed by the reduced-form parameters of the authors' models, however, produce a different picture. The total impacts upon both infant mortality and female labor force participation conform closely to the structural estimates, but the impact upon birth rates almost disappears. It seems that the indirect effects of the maternal leave variable, via infant mortality and women's labor force participation, offset the directly pronatal influence. From a policy perspective, the benefits of paid maternal leave programs would seem to be unconditionally positive with respect to lowering infant mortality, and also positive with respect to raising female labor force participation. One should not, however, expect higher birth rates from such programs. The findings also suggest that maternal leave programs can facilitate some increases in women's labor force participation without incurring the reductions in fertility which would otherwise be experienced. |
