Due to the new health measures, seminar will be online only until further notice.
Follow the IRES Lunch Seminar via this link on Teams. For non-UCLouvain participants, please email the organizers if you wish to participate.
will give a presentation on
I examine the impact of maternity leave allowance generosity on first-time mothers' subsequent fertility and career. Identification is based on a Regression Kink Design (RKD). I exploit a discontinuity in the benefit formula, which results in a lower replacement rate for women with pre-leave earnings above the maximum threshold. Using a rich set of administrative data on Belgian mothers from 2002 to 2016, I estimate that for each additional euro in daily allowance the probability of having a second child increases by 0.8 percentage point. Subsequently, I explore the consequences on their career and show that the probability of remaining in the labor force declines with the level of benefits. Heterogeneity analysis suggests that maternity leave allowance affects positively the fertility of all women, but the negative consequences on employment are concentrated on those who used to earn less than their partner before entering motherhood. No symmetric effect is found on the partner when the mother was the main breadwinner prior to having children.