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The Impact of Paternity Leave on Fathers’ Future Earnings

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  • Mari Rege
  • Ingeborg Solli

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Abstract

Using Norwegian registry data, we investigate the effect of paternity leave on fathers’ long-term earnings. If the paternity leave increased long-term father involvement, then we should expect a reduction in fathers’ long-term earnings as they shift time and effort from market to home production. For identification, we use the Norwegian introduction of a paternity-leave quota in 1993, reserving four weeks of the total of 42 weeks of paid parental leave exclusively for the father. The introduction of the paternity-leave quota led to a sharp increase in rates of leave-taking for fathers. We estimate a difference-in-differences model that exploits differences in fathers’ exposure to the paternity-leave quota by the child’s age and year of observation. Our analysis suggests that four weeks of paternity leave during the child’s first year decreases fathers’ future earnings, an effect that persists through our last point of observation, when the child is 5 years old. A battery of robustness tests supports our results. Copyright The Author(s) 2013

Suggested Citation

  • Mari Rege & Ingeborg Solli, 2013. "The Impact of Paternity Leave on Fathers’ Future Earnings," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2255-2277, December.
  • Handle: RePEc:spr:demogr:v:50:y:2013:i:6:p:2255-2277
    DOI: 10.1007/s13524-013-0233-1
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    References listed on IDEAS

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    Cited by:

    1. Ingvild Almås & Alexander W. Cappelen & Kjell G. Salvanes & Erik Ø. Sørensen & Bertil Tungodden, 2016. "Willingness to Compete: Family Matters," Management Science, INFORMS, vol. 62(8), pages 2149-2162, August.
    2. Libertad González Luna & Lidia Farré, 2017. "The effects of paternity leave on fertility and labor market outcomes," Economics Working Papers 1572, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Volker Meier & Helmut Rainer, 2017. "Daddy months," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 875-892, July.
    4. Nina Drange, 2015. "Crowding out Dad? The Effect of a Cash-for-Care Subsidy on Family Time Allocation," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 40, pages 1-2.
    5. Rannveig Kaldager Hart, 2015. "Earnings and first birth probability among Norwegian men and women 1995-2010," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 33(38), pages 1067-1104, November.
    6. Drange, Nina & Rege, Mari, 2013. "Trapped at home: The effect of mothers' temporary labor market exits on their subsequent work career," Labour Economics, Elsevier, vol. 24(C), pages 125-136.
    7. Rossin-Slater, Maya, 2017. "Maternity and Family Leave Policy," IZA Discussion Papers 10500, Institute for the Study of Labor (IZA).
    8. Maya Rossin-Slater, 2017. "Maternity and Family Leave Policy," NBER Working Papers 23069, National Bureau of Economic Research, Inc.
    9. Løken, Katrine V. & Lommerud, Kjell Erik & Reiso, Katrine Holm, 2014. "Single Mothers and their children: Evaluating a work-encouraging welfare reform," Working Papers in Economics 04/14, University of Bergen, Department of Economics.
    10. repec:eee:labeco:v:47:y:2017:i:c:p:124-137 is not listed on IDEAS
    11. Pia S. Schober & Gundula Zoch, 2015. "Change in the Gender Division of Domestic Work after Mummy or Daddy Took Leave: An Examination of Alternative Explanations," SOEPpapers on Multidisciplinary Panel Data Research 803, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. Pia S. Schober, 2014. "Daddy Leave: Does It Change the Gender Division of Domestic Work?," DIW Roundup: Politik im Fokus 46, DIW Berlin, German Institute for Economic Research.

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