Citation

Discussion Paper Details

Please find the details for DP15157 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Competition and Career Advancement: The Hidden Costs of Paid Leave

Author(s): Julian Vedeler Johnsen, Hyejin Ku and Kjell G Salvanes

Publication Date: August 2020

Keyword(s): career interruptions, Gender Gap, leave of absence, Promotion, ranking and tournament

Programme Area(s): Labour Economics

Abstract: Does leave-taking matter for young workers' careers? If so, why? We propose the competition effect-relative leave status of workers affecting their relative standing inside the firm-as a new explanation. Exploiting a policy reform that exogenously assigned four-week paid paternity leave to some new fathers, we find evidence consistent with the competition effect: A worker enjoys a better post-child earnings trajectory when a larger share of his colleagues take leave because of the policy. In contrast, we find no direct earnings effect resulting from the worker's own leave when controlling for their relative leave eligibility status within the firm.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15157

Bibliographic Reference

Johnsen, J, Ku, H and Salvanes, K. 2020. 'Competition and Career Advancement: The Hidden Costs of Paid Leave'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15157