Impact of maternity leave policy reform on enterprise labor employment: Evidence from China matched employer-employee longitudinal survey data

Abstract

This study uses the China Matched Employer-Employee Longitudinal Survey data to evaluate the impact of maternity leave reform on enterprise labor employment. The results show that the reform does not affect overall labor employment but reduces the proportion of female employees, increasing labor costs for firms with female employees who have taken maternity leave. Mechanism analysis indicates that the reform leads to gender discrimination and cost-shifting effects, negatively impacting the formal employment, promotion, and wages of women of childbearing age, while increasing substitute labor costs for firms. Explicitly specifying that maternity leave allowances be paid by the maternity insurance fund helps alleviate these adverse effects.