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Parental Leave Benefits, Household Labor Supply, and Children’s Long-Run Outcomes

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  • Rita Ginja
  • Jenny Jans
  • Arizo Karimi

Abstract

We study how parental leave benefit levels affect household labor supply, family income, and child outcomes, exploiting the speed premium (SP) in the Swedish leave system. The SP grants mothers higher benefits for a subsequent child without reestablishing eligibility through market work if two births occur within a prespecified interval. We use the spacing eligibility cutoffs in a regression discontinuity framework and find that the SP improves educational outcomes of the older child but not those of the younger. Impacts are likely driven by increased maternal time and the quality of maternal time relative to the counterfactual mode of care.

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  • Rita Ginja & Jenny Jans & Arizo Karimi, 2020. "Parental Leave Benefits, Household Labor Supply, and Children’s Long-Run Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 38(1), pages 261-320.
  • Handle: RePEc:ucp:jlabec:doi:10.1086/704615
    DOI: 10.1086/704615
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