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What Is the Case for Paid Maternity Leave?

Author

Listed:
  • Gordon B. Dahl

    (University of California San Diego)

  • Katrine V. Løken

    (University of Bergen)

  • Magne Mogstad

    (University of Chicago, Statistics Norway, and NBER)

  • Kari Vea Salvanes

    (University of Oslo)

Abstract

We assess the case for generous government-funded maternity leave, focusing on a series of policy reforms in Norway that expanded paid leave from 18 to 35 weeks. We find the reforms do not crowd out unpaid leave and that mothers spend more time at home without a reduction in family income. The increased maternity leave has little effect on children's schooling, parental earnings and labor force participation, completed fertility, marriage, or divorce. The expansions, whose net costs amounted to 0.25% of GDP, have negative redistribution properties and imply a considerable increases in taxes at a cost to economic efficiency.

Suggested Citation

  • 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.
    • Handle: RePEc:tpr:restat:v:98:y:2016:i:4:p:655-670
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    Keywords

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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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