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HR Policies and Maternal Labor Supply

The Example of Employer-Supported Childcare

Series:

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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Table of contents

Table of contents

Abbreviations

List of Figures

List of Tables

1.    Introduction

1.1   Background

1.2   Structure

2.    Framing the Picture: Maternal Employment and Childcare

2.1   Male, female and maternal labor force participation

2.2   Maternal working preferences

2.3   Role of childcare in maternal employment

2.3.1   Reasoning of public childcare and childcare options

2.3.2   Stylized facts on childcare and maternal employment

2.3.3   The state of employer-supported childcare

2.3.3.1   Framework for family-friendly human resource management

2.3.3.2   Outlook on employer-supported childcare in Germany

2.3.3.3   Economic effects for a firm

2.4   Concluding remarks

3.    Literature Review: Determinants of Maternal Labor Supply

3.1   Individual and household determinants

3.1.1   Partners and household income

3.1.2   Marital status

3.1.3   Characteristics of children

3.2   Employment modes

3.2.1   Occupation

3.2.2   Qualification and career trajectories

3.3   Employer-related factors

3.3.1   Employer-supported childcare

3.3.1.1   Employer-supported childcare and the working volume

3.3.1.2   Employer-supported childcare and the working attitude

3.3.2   Further human resources policies

3.3.3   Working environment

3.4   Welfare state

3.4.1   Monetary leave benefits

3.4.1.1   Historical flashback of monetary leave policies

3.4.1.2   Effects of monetary leave benefits

3.4.2   Taxation law

3.4.3   Public childcare facilities

3.4.4   Social insurance related benefits

3.5   Personal attitudes and further determinants

3.6   Interdependencies between determinants

3.7   Concluding remarks

4.    The Theoretical Construct of ESCC

4.1   Derivations from the neoclassical standard model

4.1.1   Assumptions and limitations of the Homo Economicus

4.1.2   Pertinence of social preferences

4.1.3   Interaction of extrinsic and intrinsic motivation

4.1.4   Expanding intrinsic motivation through lower-order needs fulfillment

4.1.5   Work motivation and maternal employment

4.2   ESCC conceptualized as an efficiency wage

4.2.1   Origin of gift-exchange theory: Efficiency wage models and social exchange theory

4.2.2   Description of gift-exchange theory

4.2.3   Application of gift-exchange theory to ESCC

4.3   Determinants for maternal employment decisions in a gift-exchange setting

4.3.1   (Firm-specific) human capital

4.3.2   Hygiene factors

4.4   Critical acclaim and concluding remarks

5.    Research methodology: Measuring the Effects of ESCC

5.1   Research objectives and questions

5.2   Research strategy

5.3   Dataset

5.4   Impact evaluation techniques and application

5.4.1   Time and extend of return-to-job after giving birth

5.4.1.1   Event history analysis and competing risk models

5.4.1.2   Application

5.4.2   Working volume with pre-school children

5.4.2.1   Propensity score matching

5.4.2.2   Difference-in-Difference estimator

5.4.2.3   Application

5.5   Operationalization of variables

6.    Results: Describing the Changes due to ESCC

6.1   Effects of ESCC on return-to-job after giving birth

6.1.1   Descriptive statistics

6.1.2   Impact evaluation: Effects of ESCC on time of return-to-job after giving birth

6.1.3   Impact evaluation: Effects of ESCC on extent of return-to-job after giving birth

6.1.4   Interim conclusion

6.2   Effects of ESCC on working volume of mothers with young children

6.2.1   Descriptive statistics

6.2.2   Direct impact on the mother

6.2.3   Sensitivity tests on direct impact

6.2.4   Indirectly affected through the partner

6.2.5   Interim conclusion

6.3   Validation of the results

6.4   Conclusion

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

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

7.2   Implications on the effect of ESCC on working volume

7.3   Overall implications of ESCC for maternal labor supply

8.    Conclusion

References

Appendix

Appendix A: Overview on impact of ESCC on work behavior

Appendix B: Description: Fixed effects

Appendix C: Overview of German studies on further effects of ESCC

Zusammenfassung in Deutsch