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Vierteljahrshefte zur Wirtschaftsforschung

Mittelfristige Effekte der Elterngeldreform in Ost- und Westdeutschland

Using a natural experiment, we analyze the medium-term impact of a recent parental benefit reform, focusing on differential effects in East and West Germany. Our results indicate that the new policy led to substantial changes in labor market outcomes three to five years after childbirth: Likewise in the East and the West, well-educated (first-time) mothers tend to have a part-time job instead of being inactive. In West Germany we additionally observe a faster and lasting return to full-time jobs by career-oriented mothers. In the East on the other hand, we find a substitution from full to part-time jobs; however, with a positive net effect on labor participation. In both regions the new policy increased the mothers' probability to return to their pre-birth employers as well as the prevalence of unlimited employment relationships.

Kluve, J. and S. Schmitz (2014), Mittelfristige Effekte der Elterngeldreform in Ost- und Westdeutschland. Vierteljahrshefte zur Wirtschaftsforschung , 83, 1, 163-181

DOI: 10.3790/vjh.83.1.163