Template-type: ReDif-Paper 1.0 Author-Name: Gerards, Ruud Author-workplace-name: ROA / Training and employment, RS: GSBE DUHR, RS: GSBE Theme Learning and Work Author-Name: Theunissen, Pomme Author-workplace-name: Finance, RS: GSBE EFME, RS: GSBE Theme Creativity, Innovation & Entrepreneurship Title: Becoming a mompreneur: Parental leave policies and mothers' propensity for self-employment Abstract: Contractionary parental leave policy reforms decrease the time mothers can stay at home after giving birth. This might discourage them to become an entrepreneur. Exploiting a German parental leave policy reform, we apply a regression discontinuity approach to establish a causal relationship between parental leave policies and the probability for mothers to become entrepreneurs (i.e., “mompreneurs”). We find that a decrease in the generosity of parental leave lowers the odds of mothers to become self-employed by 17%. We show additional evidence that suggests that this is particularly due to the reduced period of paid parental leave. Classification-JEL: h31,j10,j20,l26 Series: ROA Research Memoranda Creation-Date: 20180101 Number: 006 File-URL: https://cris.maastrichtuniversity.nl/ws/files/31288558/ROA_RM_2018_6.pdf File-Format: application/pdf File-Size: 722952 Handle: Repec:unm:umaror:2018006 DOI: 10.26481/umaror.2018006