IDEAS home Printed from https://ideas.repec.org/a/wly/econjl/v128y2018i608p81-117.html
   My bibliography  Save this article

Paid Parental Leave and Children's Schooling Outcomes

Author

Listed:
  • Natalia Danzer
  • Victor Lavy

Abstract

This article investigates whether schooling outcomes at age 15 are affected by the duration of maternity leave, i.e. the time mothers spend at home with their new†born before returning to work. We exploit an unanticipated reform in Austria which extended the maximum duration of paid and job protected parental leave from 12 to 24 months for births as of 1 July, 1990. Using PISA data from the cohorts 1990 and 1987, we find no significant overall impact of the parental leave extension on standardised test scores. However, subgroup analyses reveal strong heterogeneity by maternal education and child gender.

Suggested Citation

  • Natalia Danzer & Victor Lavy, 2018. "Paid Parental Leave and Children's Schooling Outcomes," Economic Journal, Royal Economic Society, vol. 128(608), pages 81-117, February.
  • Handle: RePEc:wly:econjl:v:128:y:2018:i:608:p:81-117
    DOI: 10.1111/ecoj.12493
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ecoj.12493
    Download Restriction: no

    File URL: https://libkey.io/10.1111/ecoj.12493?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nicole Schneeweis & Martina Zweimüller, 2014. "Early Tracking and the Misfortune of Being Young," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 394-428, April.
    2. Gennetian, Lisa A. & Hill, Heather D. & London, Andrew S. & Lopoo, Leonard M., 2010. "Maternal employment and the health of low-income young children," Journal of Health Economics, Elsevier, vol. 29(3), pages 353-363, May.
    3. Neyer, Gerda, 2003. "Family Policies and Low Fertility in Western Europe," Discussion Paper 161, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    4. Rafael Lalive & Analía Schlosser & Andreas Steinhauer & Josef Zweimüller, 2014. "Parental Leave and Mothers' Careers: The Relative Importance of Job Protection and Cash Benefits," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 219-265.
    5. Marco Francesconi & Stephen Jenkins & Thomas Siedler, 2010. "Childhood family structure and schooling outcomes: evidence for Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 1073-1103, June.
    6. Ruhm, Christopher J., 2000. "Parental leave and child health," Journal of Health Economics, Elsevier, vol. 19(6), pages 931-960, November.
    7. Tamm, Marcus, 2013. "The Impact of a Large Parental Leave Benefit Reform on the Timing of Birth around the Day of Implementation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 75(4), pages 585-601.
    8. Raquel Bernal & Michael P. Keane, 2011. "Child Care Choices and Children's Cognitive Achievement: The Case of Single Mothers," Journal of Labor Economics, University of Chicago Press, vol. 29(3), pages 459-512.
    9. Michael Neugart & Henry Ohlsson, 2013. "Economic incentives and the timing of births: evidence from the German parental benefit reform of 2007," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(1), pages 87-108, January.
    10. Gordon B. Dahl & Katrine V. Løken & Magne Mogstad & Kari Vea Salvanes, 2016. "What Is the Case for Paid Maternity Leave?," The Review of Economics and Statistics, MIT Press, vol. 98(4), pages 655-670, October.
    11. Ichino, Andrea & Lindström, Elly-Ann & Viviano, Eliana, 2014. "Hidden consequences of a first-born boy for mothers," Economics Letters, Elsevier, vol. 123(3), pages 274-278.
    12. Michael Baker & Kevin Milligan, 2015. "Maternity leave and children’s cognitive and behavioral development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 373-391, April.
    13. Eric A. Hanushek & Jens Ruhose & Ludger Woessmann, 2017. "Knowledge Capital and Aggregate Income Differences: Development Accounting for US States," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 184-224, October.
    14. Lawrence M. Berger & Jennifer Hill & Jane Waldfogel, 2005. "Maternity leave, early maternal employment and child health and development in the US," Economic Journal, Royal Economic Society, vol. 115(501), pages 29-47, February.
    15. Eric A. Hanushek & Jens Ruhose & Ludger Woessmann, 2015. "Human Capital Quality and Aggregate Income Differences: Development Accounting for U.S. States," CESifo Working Paper Series 5411, CESifo.
    16. Charles L. Baum II, 2003. "Does Early Maternal Employment Harm Child Development? An Analysis of the Potential Benefits of Leave Taking," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 381-408, April.
    17. Grossman, Michael, 2006. "Education and Nonmarket Outcomes," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 10, pages 577-633, Elsevier.
    18. Eric Bettinger & Torbjørn Haegeland & Mari Rege, 2014. "Home with Mom: The Effects of Stay-at-Home Parents on Children's Long-Run Educational Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 443-467.
    19. Ruhm, Christopher J., 2008. "Maternal employment and adolescent development," Labour Economics, Elsevier, vol. 15(5), pages 958-983, October.
    20. Morrill, Melinda Sandler, 2011. "The effects of maternal employment on the health of school-age children," Journal of Health Economics, Elsevier, vol. 30(2), pages 240-257, March.
    21. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
    22. Pedro Carneiro & Katrine V. Løken & Kjell G. Salvanes, 2015. "A Flying Start? Maternity Leave Benefits and Long-Run Outcomes of Children," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 365-412.
    23. Erik Hanushek & F. Welch (ed.), 2006. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 1, number 1, June.
    24. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    25. Liu Qian & Skans Oskar Nordstrom, 2010. "The Duration of Paid Parental Leave and Children's Scholastic Performance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-35, January.
    26. Raquel Bernal, 2008. "The Effect Of Maternal Employment And Child Care On Children'S Cognitive Development," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1173-1209, November.
    27. Baker, Michael & Milligan, Kevin, 2008. "Maternal employment, breastfeeding, and health: Evidence from maternity leave mandates," Journal of Health Economics, Elsevier, vol. 27(4), pages 871-887, July.
    28. Michael Baker & Kevin Milligan, 2010. "Evidence from Maternity Leave Expansions of the Impact of Maternal Care on Early Child Development," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    29. Jerik Hanushek & Dennis Kimko, 2006. "Schooling, Labor-force Quality, and the Growth of Nations," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 1, pages 154-193.
    30. Herbst, Chris M., 2013. "The impact of non-parental child care on child development: Evidence from the summer participation “dip”," Journal of Public Economics, Elsevier, vol. 105(C), pages 86-105.
    31. Sara Cools & Jon H. Fiva & Lars J. Kirkebøen, 2015. "Causal Effects of Paternity Leave on Children and Parents," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 801-828, July.
    32. Sakiko Tanaka, 2005. "Parental leave and child health across OECD countries," Economic Journal, Royal Economic Society, vol. 115(501), pages 7-28, February.
    33. Christopher J. Ruhm, 1998. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 285-317.
    34. Gans, Joshua S. & Leigh, Andrew, 2009. "Born on the first of July: An (un)natural experiment in birth timing," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 246-263, February.
    35. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 12, pages 697-812, Elsevier.
    36. Blau, Francine D & Grossberg, Adam J, 1992. "Maternal Labor Supply and Children's Cognitive Development," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 474-481, August.
    37. Christian Dustmann & Uta Schönberg, 2012. "Expansions in Maternity Leave Coverage and Children's Long-Term Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 190-224, July.
    38. Milagros Nores & Steven W. Barnett, 2012. "Benefits of Early Childhood Interventions Across the World: (Under) Investing in the Very Young," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 1, pages 200-228.
    39. Paul Gregg & Elizabeth Washbrook & Carol Propper & Simon Burgess, 2005. "The Effects of a Mother's Return to Work Decision on Child Development in the UK," Economic Journal, Royal Economic Society, vol. 115(501), pages 48-80, February.
    40. Beatrice Brunner & Andreas Kuhn, 2014. "Announcement effects of health policy reforms: evidence from the abolition of Austria’s baby bonus," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(4), pages 373-388, May.
    41. Matthew Gentzkow & Jesse M. Shapiro, 2008. "Preschool Television Viewing and Adolescent Test Scores: Historical Evidence from the Coleman Study," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(1), pages 279-323.
    42. Jane Waldfogel & Wen-Jui Han & Jeanne Brooks-Gunn, 2002. "The effects of early maternal employment on child cognitive development," Demography, Springer;Population Association of America (PAA), vol. 39(2), pages 369-392, May.
    43. Rafael Lalive & Josef Zweimüller, 2009. "How Does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1363-1402.
    44. Erik Hanushek & F. Welch (ed.), 2006. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 2, number 2, June.
    45. Marcus Tamm, 2013. "The Impact of a Large Parental Leave Benefit Reform on the Timing of Birth around the Day of Implementation-super-," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(4), pages 585-601, August.
    46. Jonathan Gruber, 2004. "Is Making Divorce Easier Bad for Children? The Long-Run Implications of Unilateral Divorce," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 799-834, October.
    47. Gerda R. Neyer, 2003. "Family policies and low fertility in Western Europe," MPIDR Working Papers WP-2003-021, Max Planck Institute for Demographic Research, Rostock, Germany.
    48. Fletcher, Jason & Kim, Taehoon, 2016. "The effects of changes in kindergarten entry age policies on educational achievement," Economics of Education Review, Elsevier, vol. 50(C), pages 45-62.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Thesis Thursday: Caroline Chuard
      by Chris Sampson in The Academic Health Economists' Blog on 2019-12-19 07:00:00

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chuard, Caroline, 2020. "Womb at work: The missing impact of maternal employment on newborn health," Journal of Health Economics, Elsevier, vol. 73(C).
    2. Rita Ginja & Jenny Jans & Arizo Karimi, 2017. "Parental Investments in Early Life and Child Outcomes: Evidence from Swedish Parental Leave Rules," Working Papers 2017-085, Human Capital and Economic Opportunity Working Group.
    3. Brenøe, Anne Ardila & Canaan, Serena & Harmon, Nikolaj & Royer, Heather, 2019. "Is Parental Leave Costly for Firms and Coworkers?," IZA Discussion Papers 12870, Institute of Labor Economics (IZA).
    4. Douglas Almond & Janet Currie & Valentina Duque, 2018. "Childhood Circumstances and Adult Outcomes: Act II," Journal of Economic Literature, American Economic Association, vol. 56(4), pages 1360-1446, December.
    5. Huebener, Mathias & Kuehnle, Daniel & Spiess, C. Katharina, 2019. "Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data," Labour Economics, Elsevier, vol. 61(C).
    6. Houmark, Mikkel Aagaard & Jørgensen, Cecilie Marie Løchte & Kristiansen, Ida Lykke & Gensowski, Miriam, 2022. "Effects of Extending Paid Parental Leave on Children's Socio-Emotional Skills and Well-Being in Adolescence," IZA Discussion Papers 15421, Institute of Labor Economics (IZA).
    7. Chuard, Caroline, 2023. "Negative effects of long parental leave on maternal health: Evidence from a substantial policy change in Austria," Journal of Health Economics, Elsevier, vol. 88(C).
    8. Cansu Oymak & Jean-François Maystadt, 2023. "Can refugees improve native children’s health?: Evidence from Turkey," LIDAM Discussion Papers IRES 2023017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    9. Ann-Marie Sommerfeld, 2023. "The Effect of Schooling on Parental Integration: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 1198, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Ann-Marie Sommerfeld, 2023. "The Effect of Schooling on Parental Integration," Jena Economics Research Papers 2023-018, Friedrich-Schiller-University Jena.
    11. Brade, Raphael & Himmler, Oliver & Jäckle, Robert, 2022. "Relative performance feedback and the effects of being above average — field experiment and replication," Economics of Education Review, Elsevier, vol. 89(C).
    12. Lídia Farré & Cristina Felfe & Libertad González & Patrick Schneider, 2022. "Changing Gender Norms across Generations: Evidence from a Paternity Leave Reform," Working Papers 1310, Barcelona School of Economics.
    13. Cygan-Rehm, Kamila & Kuehnle, Daniel & Riphahn, Regina T., 2018. "Paid parental leave and families’ living arrangements," Labour Economics, Elsevier, vol. 53(C), pages 182-197.
    14. Francesca Carta, 2019. "Female labour supply in Italy: the role of parental leave and child care policies," Questioni di Economia e Finanza (Occasional Papers) 539, Bank of Italy, Economic Research and International Relations Area.
    15. Mariano Tommasi & María Edo & Agustina Thailinger, 2021. "Familia y desarrollo humano en el siglo XXI. Revisión de la literatura internacional y algunos apuntes para el caso argentino," Working Papers 152, Universidad de San Andres, Departamento de Economia, revised May 2021.
    16. Feng Chen, 2023. "Does paid family leave save infant lives? Evidence from California's paid family leave program," Contemporary Economic Policy, Western Economic Association International, vol. 41(2), pages 319-337, April.
    17. Laura Goßner & Yuliya Kosyakova & Marie-Christine Laible, 2022. "Resilient or Vulnerable? Effects of the COVID-19 Crisis on the Mental Health of Refugees in Germany," IJERPH, MDPI, vol. 19(12), pages 1-20, June.
    18. Regmi, Krishna & Wang, Le, 2022. "Maternity Leave," GLO Discussion Paper Series 1184, Global Labor Organization (GLO).
    19. Brade, Raphael & Himmler, Oliver & Jäckle, Robert, 2018. "Normatively Framed Relative Performance Feedback – Field Experiment and Replication," MPRA Paper 88830, University Library of Munich, Germany.
    20. Troccoli, Claudia, 2023. "Does Paid Parental Leave Affect Children's Schooling Outcomes? Replicating Danzer and Lavy (2018)," I4R Discussion Paper Series 21, The Institute for Replication (I4R).
    21. Mathias Huebener & Daniel Kuehnle & C. Katharina Spiess, 2017. "Paid Parental Leave and Child Development: Evidence from the 2007 German Parental Benefit Reform and Administrative Data," Discussion Papers of DIW Berlin 1651, DIW Berlin, German Institute for Economic Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Natalia Danzer & Victor Lavy, 2013. "Parental Leave and Children's Schooling Outcomes: Quasi-Experimental Evidence from a Large Parental Leave Reform," NBER Working Papers 19452, National Bureau of Economic Research, Inc.
    2. Huebener, Mathias & Kuehnle, Daniel & Spiess, C. Katharina, 2019. "Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data," Labour Economics, Elsevier, vol. 61(C).
    3. Katrin Huber, 2019. "Changes in parental leave and young children’s non-cognitive skills," Review of Economics of the Household, Springer, vol. 17(1), pages 89-119, March.
    4. Chuard, Caroline, 2023. "Negative effects of long parental leave on maternal health: Evidence from a substantial policy change in Austria," Journal of Health Economics, Elsevier, vol. 88(C).
    5. Dustmann, Christian & Schönberg, Uta, 2008. "The Effect of Expansions in Maternity Leave Coverage on Children's Long-Term Outcomes," IZA Discussion Papers 3605, Institute of Labor Economics (IZA).
    6. Bullinger, Lindsey Rose, 2019. "The Effect of Paid Family Leave on Infant and Parental Health in the United States," Journal of Health Economics, Elsevier, vol. 66(C), pages 101-116.
    7. Christina Gathmann & Björn Sass, 2018. "Taxing Childcare: Effects on Childcare Choices, Family Labor Supply, and Children," Journal of Labor Economics, University of Chicago Press, vol. 36(3), pages 665-709.
    8. Canaan, Serena, 2022. "Parental leave, household specialization and children’s well-being," Labour Economics, Elsevier, vol. 75(C).
    9. Liu Qian & Skans Oskar Nordstrom, 2010. "The Duration of Paid Parental Leave and Children's Scholastic Performance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-35, January.
    10. Rita Ginja & Jenny Jans & Arizo Karimi, 2017. "Parental Investments in Early Life and Child Outcomes: Evidence from Swedish Parental Leave Rules," Working Papers 2017-085, Human Capital and Economic Opportunity Working Group.
    11. Washbrook Elizabeth & Ruhm Christopher J & Waldfogel Jane & Han Wen-Jui, 2011. "Public Policies, Women's Employment after Childbearing, and Child Well-Being," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-50, July.
    12. Natalia Danzer & Martin Halla & Nicole Schneeweis & Martina Zweimüller, 2022. "Parental Leave, (In)formal Childcare, and Long-Term Child Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 57(6), pages 1826-1884.
    13. Rita Ginja & Jenny Jans & Arizo Karimi, 2020. "Parental Leave Benefits, Household Labor Supply, and Children’s Long-Run Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 38(1), pages 261-320.
    14. Maya Rossin-Slater, 2017. "Maternity and Family Leave Policy," NBER Working Papers 23069, National Bureau of Economic Research, Inc.
    15. Andrew E. Clark & Warn N. Lekfuangfu & Nattavudh Powdthavee & George Ward, 2015. "Early Maternal Employment and Non-cognitive Outcomes in Early Childhood and Adolescence: Evidence from British Birth Cohort Data," CEP Discussion Papers dp1380, Centre for Economic Performance, LSE.
    16. Rodgers, Luke P., 2020. "The impact of paid family leave on household savings," Labour Economics, Elsevier, vol. 67(C).
    17. Rossin-Slater, Maya, 2017. "Maternity and Family Leave Policy," IZA Discussion Papers 10500, Institute of Labor Economics (IZA).
    18. Michael Baker & Kevin Milligan, 2015. "Maternity leave and children’s cognitive and behavioral development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 373-391, April.
    19. Emilia Del Bono & Marco Francesconi & Yvonne Kelly & Amanda Sacker, 2016. "Early Maternal Time Investment and Early Child Outcomes," Economic Journal, Royal Economic Society, vol. 126(596), pages 96-135, October.
    20. Khanam, Rasheda & Nghiem, Son & Connelly, Luke, 2016. "The effects of parental leave on child health and postnatal care: Evidence from Australia," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 17-29.

    More about this item

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Paid Parental Leave and Children's Schooling Outcomes (EJ 2018) in ReplicationWiki

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:econjl:v:128:y:2018:i:608:p:81-117. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.