The Dynamics of Female Employment around Childbirth

Abstract

There is a strong effect of childbirth on female labour supply. This effect is expected to be influenced, among others, by the institutional context. This paper uses panel data on the last two decades on three European countries (The Netherlands, Germany, United Kingdom) to link changes in female labour force behaviour around childbirth to changes in the national institutional context. We conclude that institutions that make the costs of combining work and family lower relative to being a full-time mother will increase female participation rates. Therefore, it is important for both women and policymakers to be aware of the possible patterns, the 'ideal pattern' (from an economic point of view), and the ways the preferred patterns can be supported by the institutional context.Keywords: female labour supply, transitions, institutions.