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Original Articles

Determinants of parental leave policies

Pages 35-43 | Published online: 28 Jul 2006
 

Abstract

A model of a firm' decision to guarantee job reinstatement following a parental leave is constructed. Guaranteed reinstatement emerges if the worker is willing to sacrifice wages greater than or equal to the minimum amount a firm requires for the policy. Predictions from the model find support in the empirical analysis. Firm size, training costs, and unions increase, which mobility of jobs skills decrease, the likelihood of a guaranteed leave.

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