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The Impact of Paternity Leave on Fathers’ Future Earnings

  • Mari Rege
  • Ingeborg Solli

    ()

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

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File URL: http://hdl.handle.net/10.1007/s13524-013-0233-1
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Article provided by Springer & Population Association of America (PAA) in its journal Demography.

Volume (Year): 50 (2013)
Issue (Month): 6 (December)
Pages: 2255-2277

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Handle: RePEc:spr:demogr:v:50:y:2013:i:6:p:2255-2277
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  1. Michael Baker & Kevin Milligan, 2008. "Evidence From Maternity Leave Expansions of the Impact of Maternal Care on Early Child Development," NBER Working Papers 13826, National Bureau of Economic Research, Inc.
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  8. Ekberg, John & Eriksson, Rickard & Friebel, Guido, 2013. "Parental leave — A policy evaluation of the Swedish “Daddy-Month” reform," Journal of Public Economics, Elsevier, vol. 97(C), pages 131-143.
  9. 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.
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  13. Michael Baker & Kevin Milligan, 2008. "How Does Job-Protected Maternity Leave Affect Mothers' Employment?," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 655-691, October.
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  15. Anne Gauthier, 2007. "The impact of family policies on fertility in industrialized countries: a review of the literature," Population Research and Policy Review, Springer, vol. 26(3), pages 323-346, June.
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