Journal article

The Impact of Paid Parental Leave on Labor Supply and Employment Outcomes in Australia

B Broadway, Guyonne Kalb, Duncan MCVICAR, Bill Martin

Feminist Economics | Taylor & Francis (Routledge) | Published : 2020


The introduction of the Australian Paid Parental Leave scheme in 2011 provides a rare opportunity to estimate the impacts of publicly funded paid leave on mothers in the first year postpartum. The almost universal coverage of the scheme, coupled with detailed survey data collected specifically for the scheme’s evaluation, means that eligibility for paid leave under the scheme can be plausibly taken as exogenous, following a standard propensity score-matching exercise. Consistent with much of the existing literature, the study finds a positive impact on mothers’ taking leave in the first half year and on mothers’ probability of returning to work in the first year. The paper provides new evide..

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Funding Acknowledgements

This work was supported by the Department of Social Services, Australian Government; University of Melbourne [a Visiting Research Scholar scheme grant from the Faculty of Business and Economics].