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In a significant development for working mothers, Chile’s 2011 reform extending postnatal leave from 12 to 24 weeks has yielded positive outcomes for women’s employment over the past fourteen years. A recent study by economist Francisca Rojas-Ampuero reveals that formal employment rates among eligible mothers increased by approximately 15 to 16 percent during the three years following the leave period.
The reform, which also introduced five days of paid paternity leave, established specific eligibility criteria based on the birth date of children. Mothers whose children were born on or after July 25, 2011, qualified for the full 84-day extension, while those with children born before May 2, 2011, were not eligible, providing a clear comparison group for the study.
Rojas-Ampuero’s analysis employed a regression discontinuity design to assess leave usage patterns and a difference-in-differences model to evaluate labor market outcomes over seven years. Notably, the reform led to a reduction in the use of alternative leave types, such as sick-child leave and mental health leave, as eligible mothers utilized the extended maternity leave instead. This shift indicates that the previous system did not effectively prevent extended absences; rather, it required mothers to navigate a complex landscape of leave options.
The study found that the most significant benefits were experienced by mothers with less than ten months of formal employment prior to maternity leave, particularly in areas with limited childcare access. For these women, the extended leave proved crucial for maintaining formal employment, addressing the challenges posed by inadequate childcare options and job protection.
In contrast to research from high-income countries that often finds negligible long-term effects of maternity leave on employment, the Chilean reform’s outcomes highlight the importance of structural factors. The combination of limited childcare availability, weaker job protections, and a higher prevalence of informal labor in Chile creates distinct incentives for mothers regarding their return to work.
While the findings suggest that the reform effectively supported maternal employment, the study’s focus on women already in the formal sector raises questions about the implications for informal or lower-income workers, whose experiences may differ. The ongoing analysis of these conditions will be crucial for understanding the broader impact of maternity leave policies in varying economic contexts.
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