Discussion Papers

Does a Mother's Early Return to Work after Childbirth Improve Her Future Employment Status? Evidence Using the Birth Month of Japanese Babies

DP Number DP-2015-007
Language 英語のみ
Date March, 2016
Author Wataru Kureishi, Colin McKenzie, Kei Sakata, Midori Wakabayashi
JEL Classification codes J08, J13, J22
Keywords bivariate probit model, childcare, employment, parental leave, quasi-experiment, treatment effect
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We examine if a Japanese mother's early return to work after parental leave improves
her employment status in the short- or long-term. We estimate recursive bivariate
probit models for a mother’s employment status and an early return to work dummy
using July births as an instrument. In Japan, the timing of a birth is crucial for the
application deadline for admission into a licensed childcare facility which affects the
timing of a mother’s return to work. We find that an early return to work has a positive
effect on the mother’s likelihood of being in full-time employment in the long-term.