We study the labor supply effects of a change in child-subsidy policy designed to both increase fertility and shorten birth-related employment interruptions. The reform yields most of the intended effects

Chile’s labour force participation is low by comparison with most countries in the OECD area, especially among females and youths. In the case of women, labour supply has risen steadily over time for prime-age and older individuals, against a background of relative stability for men. With...