Title: To leave or not to leave - extended maternity leave benefits and its effects over workers and firms (WIP).

Abstract: In this paper, I analyze the introduction of a voluntary maternity leave expansion that happened in Brazil. Firms were encouraged to sign up for a program that increased the provision of paid maternity leave (fully funded by the government) from 4 to 6 months. I find that only 16% of eligible firms joined the program 12 years after its introduction. These firms are typically bigger, have a higher share of white and more educated workers, and retain their workers for more time. From the worker’s perspective, only 40% of eligible mothers enjoy the 2 months maternity leave extension. I also document a considerable within-firm heterogeneity for those entitled to the extra benefit. Finally, I find evidence that firms tend to hire more low-skilled workers after joining the program and that these are the ones who tend to enjoy the benefit less.

Organisers: Bruno, Cora & Jinlin