Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295931 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16908
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper explores how firms respond to the exit of mothers from the labour market after childbirth. As an exogenous shifter in mothers' quits, we use a policy reform that extended the potential duration of unemployment benefits, which Italian mothers can receive also upon resigning within 12 months of giving birth. In response to the reform, we find that mothers have a higher probability of quitting in the first year after childbirth, a slightly decreased likelihood of being laid off, and a greater probability of remaining non-employed for at least 3 years following childbirth. Firms employing more exposed mothers respond by signicantly increasing net hiring and turnover, especially of young women. The surge in women's hiring primarily occurs through temporary contracts that are not converted into permanent ones, implying a persistent increase in the share of female temporary jobs. This outcome suggests the presence of statistical discrimination, manifesting through a decline in the quality of job opportunities available to women.
Subjects: 
quits
hirings
separations
unemployment benets
statistical discrimination
child penalty
JEL: 
J16
J23
J21
J38
J65
Document Type: 
Working Paper

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