Do Family Values Shape the Pace of Return to Work after Childbirth?

This paper evaluates the effect of a parental leave policy reform in Germany in 2007 on the pace of return to work of mothers with different family values background. Using a regression discontinuity design and an epidemiological approach to family values, the paper shows that the policy reform has accelerated the pace of return to work mainly for mothers with traditional family values background, thus leading to overall convergence between mothers with different family values background. The magnitude of convergence, however, differs across education levels. Mothers with low and vocational education exhibit moderate-to-high levels of convergence, whereas highly-educated mothers actually diverge in their pace of return to work. The paper suggests that mothers with traditional family background may use the educational system either as way to enhance their cultural investment or as a marriage market, and therefore will not be very sensitive to changes in economic incentives.