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Leave-Taking’S Prevailing Effect On Real Wage Growth: Paid Vs. Unpaid Maternity Leave, Soe Han Tha
Leave-Taking’S Prevailing Effect On Real Wage Growth: Paid Vs. Unpaid Maternity Leave, Soe Han Tha
Senior Theses and Projects
Paid maternity leave’s effect on women’s real wage growth is indeterminate in theory. Paid maternity leave could help a woman return to the same job postpartum, reducing the unemployment in between jobs (which we see as external leaves). Simultaneously, paid maternity leave could incentivize women to take more leave within a job (which we see as internal leaves). According to the human capital theory, if more women increase leave-taking due to the subsidy on leave and the cheaper opportunity cost of pregnancy, women’s overall productivity will decline and their wage growth will slow down. This analysis uses the National Longitudinal …