Parental Allowance Higher percentage of working mothers

Share of working mothers significantly increased by parental allowance

05/23/2014

Since the introduction of the parental allowance in 2007, the proportion of working mothers has increased significantly, according to a recent study by the Rheinisch-Westfälische Institut für Wirtschaftsforschung (RWI). At the same time, mothers would increasingly return to the same employer where they worked before the birth of the child, which in turn would be rewarded by employers with a higher number of permanent contracts.

For the first time was in the current study „the employment situation of the mothers in the medium term - up to 5 years after the birth of the child - was investigated“, reports the RWI. It was shown, „that the parental allowance has fundamentally changed the employment situation of mothers.“ Firstly, the mothers would work more than before, secondly they would work longer hours, thirdly they would return to their previous job and, fourthly, their employer would increasingly reward them with open-ended contracts.

Data evaluated by 11,600 mothers
For the study, the RWI evaluated the data of the microcensus for the years 2006 to 2011 from more than 11,600 mothers. About 5,900 mothers were among the parents and about 5,700 made up the comparison group (potential recipients of child support). The mothers of the Elterngeld group had their children born in the first quarter of 2007, the mothers of the peer group in the last quarter of 2006. The new parental allowance scheme came into effect on January 1, 2007. Thus, the parents were at the time of procreation of the children know nothing about the new rules, which selection bias distortions of the sample are excluded, reports the RWI.

Labor market behavior of mothers changed sustainably
The study shows that the parental allowance has changed the labor market behavior of the mothers over a longer period. Among other things have „Parental allowance increases the likelihood of gainful employment by up to 10 percent“, so the message of the RWI. According to their own statements, the scientists were quite surprised by the pronounced long-term effects of the parental allowance. Because actually that shape „Generosity of the parental allowance especially the first year.“ Accordingly, no such long-term effects on the labor market behavior of the mothers were to be expected.

Mothers and employers benefit
The researchers conclude that the positive long-term effect of parental benefit „This is mainly due to a fundamental redefinition of social patterns and norms triggered by the reform.“ Because the parental allowance defined with its duration (12 + 2 month) for the first time one „anchor“ in the sense of a socially accepted time, precisely defined by the reference, at which mothers return to working life, reports the RWI. The interaction of labor supply and demand effects shows that both mothers and their employers profit from this, above all by providing planning security.

Extra work, especially in the part-time area
The study also showed that mothers do more work, but especially in part-time work. In full-time employment, the parental allowance did not develop a corresponding effect. However, the working hours offered within part-time employment have increased significantly in the period between three and five years after birth among parental benefit recipients. „Parental benefit mothers work significantly more often in the upper part-time period of about 30 hours per week than in the range of 15 to 20 hours per week“, so the message of the RWI.

Parental benefit mothers often take their time with other children
The study of the RWI showed, in addition to the positive effects of the parental allowance, a rather disadvantageous effect. This is because the probability of having parental benefit mothers to have another child within the 5-year period has fallen slightly, according to the RWI. This applies in particular to younger mothers who were 29 years or younger at the birth of the child under consideration. This is probably related to the decision to return to work sooner. However, this has no empirically measurable effect on the total fertility (thus in particular the number of first births), so the conclusion of the RWI. (Fp)