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Does child spacing affect children’s outcomes? Evidence from a Swedish reform

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Author Info

  • Pettersson-Lidbom, Per

    ()
    (Departmet of Economics, Stockholm University)

  • Skogman Thoursie, Peter

    ()
    (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

In this paper, we provide evidence of whether child spacing affects the future success of children. As an exogenous source of variation in child spacing, we make use of the introduction of an administrative rule in the parental leave benefit system in Sweden. This rule made it possible for a woman to retain her previous high level of parental leave benefits, i.e., 90 percent wage replacement, without entering the labor market between births provided that the interval between the births did not exceed 24 months. The rule had a much larger effect on the birth spacing behavior for native-born mothers compared to foreign-born mothers due to their differential attachment to the labor market. We find that the rule caused a reduction in spacing among native-born mothers as compared to the foreign-born mothers. For individuals born by native-born mothers, the reform also caused a decrease in educational attainment. Thus, this suggests that the effect of spacing children closer has a negative impact on children’s future outcomes. We provide additional evidence that this is likely due to the strong effects of early environment on the capacity for human skill development as discussed by Knutsen et al. (2006).

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2009:7.

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Length: 67 pages
Date of creation: 31 Mar 2009
Date of revision:
Handle: RePEc:hhs:ifauwp:2009_007

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Phone: (+46) 18 - 471 70 70
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Web page: http://www.ifau.se/
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Related research

Keywords: Child spacing; parental leave; child school performance;

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Cited by:
  1. 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.
  2. Nancy Qian, 2010. "Quantity-Quality and the One Child Policy: The Only-Child Disadvantage in School Enrollment in Rural China," Working Papers id:2558, eSocialSciences.
  3. Cygan-Rehm, Kamila, 2013. "Earnings-Dependent Parental Leave Benefit and Fertility: Evidence from Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80021, Verein für Socialpolitik / German Economic Association.

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