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This is what happens when you pay women to take maternity leave

Some high-earning women may be hesitant to put their careers on hold to have a baby, but financial incentives may get them over that hurdle.

In Germany, some women are now offered a 21,000 euros ($25,127) more during maternity leave than they used to get. And even an additional 1,000 euros ($1,194) in total paid leave entitlements could raise the average birth probability by 2.1% each year in Germany, Anna Raute, a professor in the department of economics at the University of Mannheim in Germany, estimates in a recent research report distributed by the National Bureau of Economic Research. Raute analyzed the effects of Germany’s earnings-related paid maternity leave, where women are paid a high percentage of their pre-birth salaries, to find the connection between women with higher education and higher earnings to a low fertility rate.

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