Paid Parental Leave and Female Labour Supply: A Review

Abstract

This review is based on the international and Australian literature on paid parental leave. It does not aim to be exhaustive but focuses on the impact paid parental leave has on the labour force participation of mothers in developed countries. Four aspects of paid parental leave are explored, including the impacts of: introducing paid parental leave; changing the duration of existing paid parental leave; changing the generosity of existing paid parental leave payments; and paid paternity leave. It interprets the implications in the context of Australia, and includes descriptive information on the recent and current situation in Australia.