German federal law has increased the potential duration of maternity leave five times since 1985. A theoretical model demonstrates that the cumulative return probability at potential duration cannot decline unless the mother's employment conditions or career expectations change. We estimate...

Germany is characterised by large gender gaps in the labour market. Both the gender pay gap as well as the gender gap in working hours are among the highest in Europe. Family policy reforms such as increasing the parental leave period that is ear-marked for fathers as well as reducing the high...