Extended Maternity Leave in Chile Boosted Formal Employment for Eligible Mothers
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A new study shows Chile's 2011 extension of postnatal leave from 12 to 24 weeks led to a significant increase in formal employment for eligible mothers in the years immediately after their leave ended. The policy also reduced mothers' reliance on other types of leave to extend their time at home. The benefits were strongest for mothers with shorter job tenure and in areas with limited childcare.
Facts First
- Formal employment for eligible mothers rose by 15–16 percent in the first three years after their extended leave ended.
- The reform reduced mothers' use of sick-child, mental health, or pregnancy-related illness leave to extend time at home.
- The employment gains faded between years four and seven as mothers who were not eligible for the extension caught up.
- The strongest employment effects were seen for mothers with less stable work histories and in municipalities with limited childcare access.
- The study tracked labor market outcomes over seven years using a regression discontinuity design and a difference-in-differences model.
What Happened
In October 2011, Chile extended postnatal leave from 12 to 24 weeks for women contributing to the country's social security system and introduced five days of paid paternity leave. Economist Francisca Rojas-Ampuero published a study this year in the Journal of Development Economics analyzing the reform's impact. The study tracked women's employment in the fourteen years following the change. Mothers of children born on or after July 25, 2011, qualified for the full extension, while those with children born before May 2, 2011, were not eligible. Mothers with children born between those dates received a partial extension.
Why this Matters to You
If you are a parent or planning to become one, this study suggests that longer, dedicated maternity leave can provide a clearer path back to work. It may reduce the need to navigate other, less predictable leave systems to stay home with a newborn. The findings indicate the policy was particularly helpful for mothers newer to their jobs and those living in areas where childcare options are scarce, which could inform future policy design in other regions.
What's Next
The study's findings show a clear initial boost to employment, which may be used to evaluate and shape parental leave policies elsewhere. Researchers might next investigate the long-term career trajectories and wage growth of the mothers who benefited from the extension, or examine the effects of the concurrent introduction of paternity leave.