The Impact of Paid Parental Leave on Labor Supply and Employment Outcomes in Australia
By Barbara Broadway, Guyonne Kalb, Duncan McVicar, and Bill Martin
HIGHLIGHTS
- Studying the effects of introducing paid parental leave (PPL) in an advanced industrial country is important for the US, which is considering PPL.
- PPL was introduced in Australia in 201 l. Previously only 57 percent of 20–45-year-old women had access to paid parental leave provided by employers.
- Post-PPL, mothers initially return to work from leave more slowly than before, but after about six months of leave they return to work at a faster rate than pre-PPL.
- Post-PPL, the probability of returning to work within a year is higher than pre-PPL.
- PPL helps mothers balance paid work and family life and improves workplace attachment. Both effects are, on average, stronger among more disadvantaged groups.
