Chile's Maternity Leave Boost Lifted Women's Jobs by 15%

Chile doubled paid maternity leave in 2011, and working mothers responded by staying in their jobs instead of dropping out of the workforce.

The reform extended postnatal leave from 12 to 24 weeks for women contributing to social security. Economist Francisca Rojas-Ampuero tracked what happened over the next 14 years, and the results challenge what many wealthy countries have found about parental leave.

Formal employment among eligible mothers jumped 15 to 16 percent in the three years after their leave ended. The boost gradually faded between years four and seven, not because women left their jobs, but because mothers who didn't get the extended leave eventually caught up.

The reform created a natural experiment. Mothers whose babies were born on or after July 25, 2011, got the full 84-day extension. Those who gave birth before May 2, 2011, didn't qualify. Rojas-Ampuero used this timing difference to isolate the reform's effects.

Before the change, Chilean mothers were already taking extended time off, they just had to get creative about it. Many claimed sick-child leave, mental health leave, or pregnancy-related illness to stay home longer. After the reform, use of these workarounds dropped significantly.

The policy didn't increase total time away from work as much as it simplified the path. Mothers no longer had to cobble together a patchwork of absences or risk their job security by disappearing without legitimate cover.

The Ripple Effect

The employment gains were strongest for mothers who needed help most. Women with less than ten months of formal employment before giving birth saw bigger improvements than those with stable work histories. The effect was also larger in areas with limited access to affordable childcare.

For mothers with weak footholds in the formal economy and few care options, the extended leave became a bridge rather than a barrier. It kept them connected to their jobs during a vulnerable period instead of pushing them into informal work or out of the workforce entirely.

This differs sharply from research in wealthy countries, where extended maternity leave often shows modest or no long-term employment effects. Chile's success likely stems from addressing specific structural problems: scarce childcare, weaker job protections, and high rates of informal employment.

Policymakers designed the reform specifically to boost maternal employment among lower-income women and compensate for limited childcare infrastructure. The data suggests they succeeded, at least for the critical first three years.

One important note: the study only tracked women already working formally before childbirth, a group already better positioned than most. Whether the same benefits would reach informal or lower-income workers remains an open question.

The takeaway is clear: when maternity leave policy matches the real challenges mothers face, it can keep them in the workforce instead of forcing them out.