Peer Effects in Parental Leave Decisions

  title={Peer Effects in Parental Leave Decisions},
  author={Clara Welteke and Katharina Wrohlich},
  journal={Economics of Networks eJournal},
This paper analyzes to what extent parental leave decisions of mothers with young children depend on the decisions made by their coworkers. The identification of peer effects, which are defined as indirect effects of the behavior of a social reference group on individual outcomes, bears various challenges due to correlated characteristics within social groups and endogenous group membership. We overcome these challenges by exploiting quasi-random variation in the costs of parental leave during… 

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