About the event
This paper studies how the statutory right to work part-time affects mothers' post-birth labor market outcomes and higher-order fertility. I use a differences-in-differences design to investigate the introduction of a German law in 2001 that grants the right to work part-time to employees working in firms with more than 15 employees. I find that mothers who gain the right to work part-time are more likely to work part-time in the short-run after childbirth indicating that the law relaxed a binding constraint. However, the part-time status is unaffected in the long-run. In the long-run, the law has a positive effect on maternal employment and labor income. The results suggest that the increase in the employment rate is not driven by a higher return to work probability, but is rather due to a lower probability to drop out of the labor market after the temporary return and a lower probability to give birth to an additional child.
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