@TechReport{iza:izadps:dp17845, author={Brenøe, Anne Ardila and Krenk, Ursa and Steinhauer, Andreas and Zweimüller, Josef}, title={How Do Firms Respond to Parental Leave Absences?}, year={2025}, month={Apr}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={17845}, url={https://www.iza.org/publications/dp17845}, abstract={How do firms adjust their labor demand when a female employee takes temporary leave after childbirth? Using Austrian administrative data, we compare firms with and without a birth event and exploit policy reforms that significantly altered leave durations. We find that (i) firms adjust hiring, employment, and wages around leave periods, but these effects fade quickly; (ii) adjustments differ sharply by gender, reflecting strong gender segregation within firms; (iii) longer leave entitlements extend actual leave absences but have only short-term effects; and (iv) there is no impact on firm closure up to five years after birth.}, keywords={absence duration;gender;labor demand;labor supply;firms;family leave}, }