The labour market situation of women being on childcare leave in Hungary Special difficulties in access to labour market Joint ECE/ILO/Eurostat Seminar on Quality of Work, May 2005, Geneva

Content Brief history of women’s employment and the childcare system Brief history of women’s employment and the childcare system The labour market exclusion of child-raising women in the 2000s, The labour market exclusion of child-raising women in the 2000s, Main factors of the disadvantageous position of child-raising women and steps to improve their employability Main factors of the disadvantageous position of child-raising women and steps to improve their employability Conclusions Conclusions

Brief history of women’s employment and the childcare system Labour shortage in the 50s - increasing women employment rate, short maternity leave, wide and adaptable network of childcare institutions Labour shortage in the 50s - increasing women employment rate, short maternity leave, wide and adaptable network of childcare institutions Demographical peak, lack of childcare institutions - the childcare allowance was introduced at the end of 60-ies (low fix sum for one year) Demographical peak, lack of childcare institutions - the childcare allowance was introduced at the end of 60-ies (low fix sum for one year) In the 70s the duration of the childcare allowance period was extended to 3 years In the 70s the duration of the childcare allowance period was extended to 3 years In 1982 the childcare fee was introduced (wage depending fee for the first period of the childcare leave) In 1982 the childcare fee was introduced (wage depending fee for the first period of the childcare leave) At the beginning of 90s every 5th workplace disappeared- women with small children became less employable group At the beginning of 90s every 5th workplace disappeared- women with small children became less employable group In 1993 as part of the „Social law” the child-raising benefit was introduced (motherhood as a main job) In 1993 as part of the „Social law” the child-raising benefit was introduced (motherhood as a main job) In 1996 allowances became mean-tested (till 1998), but the employment criterion was cancelled In 1996 allowances became mean-tested (till 1998), but the employment criterion was cancelled

The main characteristics of the existing childcare system

The presence of child-raising women on the labour market in the 2000s Increasing % of young mothers stay at home for the whole childcare period and even after Increasing % of young mothers stay at home for the whole childcare period and even after Parallel with the increasing number of children in the family decreasing labour market participation of mothers Parallel with the increasing number of children in the family decreasing labour market participation of mothers Positive exception: mothers with higher education Positive exception: mothers with higher education

Main factors of the disadvantageous position of child-raising women and steps to improve their employability Factors: During the long maternity leave the connection with the employer gets loose or even terminates During the long maternity leave the connection with the employer gets loose or even terminates The knowledge becomes outdated The knowledge becomes outdated Less flexibility in connection with work circumstances (e.g. overtime, shift work, working at the weekends, long distance) Less flexibility in connection with work circumstances (e.g. overtime, shift work, working at the weekends, long distance) Frequent absence from work due to care of sick child Frequent absence from work due to care of sick child Low chance to find suitable workplace (part time work, distance work, flexi-time) Low chance to find suitable workplace (part time work, distance work, flexi-time) Insufficient supplementary effect between value of housework and the take home pay Insufficient supplementary effect between value of housework and the take home pay

Steps to improve employability Free education or labour market training for parents on childcare leave Free education or labour market training for parents on childcare leave Expanding eligibility for work in the childcare leave period Expanding eligibility for work in the childcare leave period Subsidies for employer in case of employment after childcare period Subsidies for employer in case of employment after childcare period A special award for the so called family friendly workplace A special award for the so called family friendly workplace

Conclusions Real improvement: labour intensive economic growth Real improvement: labour intensive economic growth Family friendly social climate Family friendly social climate Small steps are important, too Small steps are important, too

Proportion of working mothers compared to all women of the same educational level, by number of children

Distribution of child-care beneficiaries after the entitlement period, by the possibility of the return to work, 1993, 1995, 1999, 2002