Increasing mothers’ labor supply is a key policy challenge in many OECD countries. Germany recently introduced a generous parental benefit that allows for strong consumption smoothing after childbirth and, by taking into account opportunity costs of childbearing, incentivizes working women to...

Over the last decades fertility rates have decreased in most developed countries, while female labour force participation has increased strongly over the same time period. To shed light on the relationship between women's fertility and employment decisions, we analyse their transitions to the...