A new study has found that Luxembourg’s parental leave policy has boosted the rate of working mothers.
Marie Valentova of the Luxembourg Institute of Socio-Economic Research examined the impact of the paid leave system on mothers of one and two children who had been working at least 20 hours a week before childbirth.
The research revealed that the policy increased “labour market engagement”, and had a bigger impact on women who had worked part-time before having their baby.
“Labour-market engagement is measured by the number of hours worked monthly, 1, 2 and 3 years following the birth of the last child.”
Valentova examined social security data between 1995 and 2002, and the paper concluded:
“[A]mong mothers with one child, the introduction of the policy had a significant and positive impact on the working hours during the first 3 years after childbirth. Among mothers with two children, the impact of the policy was significant for 1 year after childbirth. Heterogeneity effect analysis shows that single-child mothers who worked part-time before childbirth were substantially more responsive to the policy than their full-time working counterparts.”