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Research ArticleArticles

The Response of Firms to Maternity Leave and Sickness Absence

Ian M. Schmutte and Meghan M. Skira
Published online before print July 06, 2023, 0522-12352R2; DOI: https://doi.org/10.3368/jhr.0522-12352R2
Ian M. Schmutte
Ian M. Schmutte is an Associate Professor in the Department of Economics in the Terry College of Business at the University of Georgia.
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Meghan M. Skira
Meghan M. Skira is an Associate Professor in the Department of Economics in the Terry College of Business at the University of Georgia ().
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Abstract

We study how employers respond to worker absences arising from maternity and non-work-related sickness leave. Using administrative data on nearly one million spells of leave in Brazil, we identify the short-run effects of a leave spell starting on occupational employment, hiring, and separations. Employers respond immediately by increasing hiring, but the increase is substantially less than one-for-one replacement. We find modest heterogeneity across worker and job characteristics and market conditions, but the largest differences in employer responses arise across maternity and sickness leave. Overall, our results imply that hiring replacement labor is costly and firms manage absences through other channels.

JEL Codes:
  • J23
  • J21
  • J63
  • J68
  • J13

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Journal of Human Resources: 60 (3)
Journal of Human Resources
Vol. 60, Issue 3
1 May 2025
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The Response of Firms to Maternity Leave and Sickness Absence
Ian M. Schmutte, Meghan M. Skira
Journal of Human Resources Jul 2023, 0522-12352R2; DOI: 10.3368/jhr.0522-12352R2

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The Response of Firms to Maternity Leave and Sickness Absence
Ian M. Schmutte, Meghan M. Skira
Journal of Human Resources Jul 2023, 0522-12352R2; DOI: 10.3368/jhr.0522-12352R2
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Keywords

  • J23
  • J21
  • J63
  • J68
  • J13
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