The impact of Vietnam’s 2013 extension of paid maternity leave on women’s labour force participation

Abstract

In 2013, Vietnam expanded its paid maternity leave from four to six months. This study evaluated whether the expansion of Vietnam’s paid maternity leave policy was associated with improved long-term labour market outcomes for Vietnamese women. We used a regression discontinuity design to evaluate the impact of this policy on the probability of women holding a job and a formal labour contract three to five years after giving birth. Implementation of the policy was not associated with an overall increase in the probability of holding a paid job (RD = −1.9 percentage-points, 95% CI = −4.0, 0.1) or paid job with labour contract (RD = −2.6 percentage-points, 95% CI = −5.3, 0.1). Expansion of the policy was associated with a decreased probability of holding a formal labour contract among women with an upper secondary school education (RD = −3.6 percentage-points; 95% CI −6.4, −0.8) and without other young children (RD = −4.6 percentage-points; 95% CI = −7.9, −1.4). Our analyses suggest that Vietnam’s implementation of an expanded paid maternity leave policy has not translated to an increase in the probability of holding a paid job or formal paid job three to five years after giving birth.