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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.

Suggested Citation

  • 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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    3. Fabel, Marc, 2021. "Maternity leave and children's health outcomes in the long-term," Journal of Health Economics, Elsevier, vol. 76(C).
    4. Moberg, Ylva, 2019. "Speedy responses: Effects of higher benefits on take-up and division of parental leave," Working Paper Series 2019:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Joseph Price & Luke P. Rodgers & Jocelyn S. Wikle, 2021. "Dinner timing and human capital investments in children," Review of Economics of the Household, Springer, vol. 19(4), pages 1047-1075, December.
    6. Paule-Paludkiewicz, Hannah, 2020. "Does the Right to Work Part-Time Affect Mothers' Labor Market Outcomes?," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224556, Verein für Socialpolitik / German Economic Association.
    7. Tudor, Simona, 2020. "Financial incentives, fertility and early life child outcomes," Labour Economics, Elsevier, vol. 64(C).
    8. Ginja, Rita & Karimi, Arizo & Xiao, Pengpeng, 2020. "Employer Responses to Family Leave Programs," IZA Discussion Papers 13833, Institute of Labor Economics (IZA).
    9. Dong, Xinwei, 2020. "Effect of birth interval on the first child’s nutrition status: Evidence from China," Labour Economics, Elsevier, vol. 67(C).
    10. Moberg, Ylva, 2018. "Speedy Responses: Effects of Higher Benefits on Take-up and Division of Parental Leave," Working Paper Series 2018:14, Uppsala University, Department of Economics.
    11. Lalive, Rafael, 2021. "Mothers at Work: How Mandating Paid Maternity Leave Affects Employment, Earnings and Fertility," CEPR Discussion Papers 16418, C.E.P.R. Discussion Papers.
    12. Fernando Delbianco & Federico Fioravanti & Fernando Tohm'e, 2020. "The Impact of Birth Order on Behavior in Contact Team Sports: the Evidence of Rugby Teams in Argentina," Papers 2004.09421, arXiv.org.
    13. Chu, Yu-Wei Luke & Cuffe, Harold E & Doan, Nguyen, 2021. "Motherhood Employment Penalty and Gender Wage Gap Across Countries: 1990–2010," Working Paper Series 9446, Victoria University of Wellington, School of Economics and Finance.
    14. Katharina Heisig & Larissa Zierow, 2020. "Elternzeitverlängerung in der DDR: Langfristig höhere Lebenszufriedenheit der Kinder," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 27(02), pages 07-09, April.
    15. Canaan, Serena, 2019. "Parental Leave, Household Specialization and Children's Well-Being," IZA Discussion Papers 12420, Institute of Labor Economics (IZA).

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