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Paid parental leave and families’ living arrangements

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  • Cygan-Rehm, Kamila
  • Kuehnle, Daniel
  • Riphahn, Regina T.

Abstract

We examine how a paid parental leave reform causally affected families’ living arrangements. The German reform we examine replaced a means-tested benefit with a universal transfer paid out for a shorter period. Combining a regression discontinuity with a difference-in-differences design, we find that the reform increased the probability that a newborn lives with non-married cohabiting parents. This effect results from a reduced risk of single parenthood among women who gained from the reform. We reject the economic independence hypothesis and argue that the reform effects for those who benefited from the reform are consistent with hypotheses related to the improved financial situation of new mothers after the reform and increased paternal involvement in childcare.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:labeco:v:53:y:2018:i:c:p:182-197
    DOI: 10.1016/j.labeco.2018.05.008
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    Cited by:

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    2. Anna Moring & Johanna Lammi-Taskula, 2021. "Parental Leave Reforms in Finland 1977–2019 from a Diversity Perspective," Social Inclusion, Cogitatio Press, vol. 9(2), pages 338-349.
    3. Canaan, Serena, 2019. "Parental Leave, Household Specialization and Children's Well-Being," IZA Discussion Papers 12420, Institute of Labor Economics (IZA).
    4. Fontenay, Sébastien & Tojerow, Ilan, 2020. "Work Disability after Motherhood and How Paternity Leave Can Help," IZA Discussion Papers 13756, Institute of Labor Economics (IZA).
    5. Zimmert, Franziska & Zimmert, Michael, 2020. "Paid parental leave and maternal reemployment: Do part-time subsidies help or harm?," Economics Working Paper Series 2002, University of St. Gallen, School of Economics and Political Science.

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    More about this item

    Keywords

    Parental leave; Living arrangements; Marriage; Cohabitation; Single motherhood; Child well-being; Early childhood;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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