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HR Policies and Maternal Labor Supply

The Example of Employer-Supported Childcare


Susanne Schneider

The author asks how far the extension of employer-supported childcare serves as a driver for higher maternal labor supply. She addresses this question by categorizing employer-supported childcare as an efficiency wage introduced by the employer to increase the working volume of mothers. Applying various impact evaluation techniques in an econometric analysis, the author concludes that the availability of employer-supported childcare has a positive impact on the length and working volume of mothers who return back to work after giving birth. Furthermore, the usage of employer-supported childcare by mothers with pre-school age children influences the amount of agreed and actual working hours positively.

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7. Discussion: ESCC as a Human Resource Policy for Mothers


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7.  Discussion: ESCC as a Human Resource Policy for Mothers

The subsequent sections discuss the results distinctively in regards to return-to-job and working volume distinctly. Afterwards, common implications with a focus on the reference to the theoretical expectations as well as the conclusions of the sections on further effects are compiled. The discussion on the theoretical implications of the both empirical parts is combined since the same framework has been used for both parts and conclusions can be hence deliberated about each other.16 The final part includes as well a discussion on the reasoning of non-significant variables, which have been excluded due to pre-tests.

7.1  Implications on the effect of ESCC on the re-entry to work

The first part of the analysis examined that the availability of ESCC before giving birth positively affects the decision to and point of time when a woman returns to work, which is supported by both descriptive statistics and impact evaluation. Being aware of the additional option of childcare before beginning parental leave seems to influence maternal labor supply positively during the work interruption. The regression results reflect further implications substantial enough to warrant it being highlighted that this part of the analysis excludes mothers who are not returning to work at all. Unfortunately, the chosen method does not allow differentiating between the influence of ESCC on the decision to return-to-work in general or the length of the work interruption.

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