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Home with Mom: The Effects of Stay-at-Home Parents on Children's Long-Run Educational Outcomes

  • Eric Bettinger
  • Torbjørn Haegeland
  • Mari Rege

In 1998 the Norwegian government introduced a program that increased parents’ incentives to stay home with children under the age of three. Many eligible children had older siblings, and we investigate how this program affected long-run educational outcomes of the older siblings. Using comprehensive administrative data, we estimate a difference-in-differences model which exploits differences in older siblings’ exposures to the program. We find a significant positive treatment effect on older siblings’ 10th grade GPA, and this effect seems to be largely driven by mother’s reduced labor force participation and not by changes in family income or father’s labor force participation.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4274.

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Date of creation: 2013
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Handle: RePEc:ces:ceswps:_4274
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  1. Charles L. Baum II, 2003. "Does Early Maternal Employment Harm Child Development? An Analysis of the Potential Benefits of Leave Taking," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 381-408, April.
  2. Gordon B. Dahl & Lance Lochner, 2010. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20105, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  3. Ruhm, Christopher J., 2008. "Maternal employment and adolescent development," Labour Economics, Elsevier, vol. 15(5), pages 958-983, October.
  4. Michael Baker & Kevin Milligan, 2010. "Evidence from Maternity Leave Expansions of the Impact of Maternal Care on Early Child Development," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
  5. Christian Dustmann & Uta Sch�nberg, 2012. "Expansions in Maternity Leave Coverage and Children's Long-Term Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 190-224, July.
  6. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
  7. Torberg Falch & Bjarne Strom, 2011. "Schools, Ability, and the Socioeconomic Gradient in Education Choices," CESifo Working Paper Series 3313, CESifo Group Munich.
  8. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May.
  9. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
  10. Marit Rønsen, 2009. "Long-term Effects of Cash for Childcare on Mothers' Labour Supply," LABOUR, CEIS, vol. 23(3), pages 507-533, 09.
  11. 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.
  12. Blau, Francine D & Grossberg, Adam J, 1992. "Maternal Labor Supply and Children's Cognitive Development," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 474-81, August.
  13. Torberg Falch & Ole Henning Nyhus & Bjarne Strøm, 2014. "Performance of Young Adults: The Importance of Different Skills," CESifo Economic Studies, CESifo, vol. 60(2), pages 435-462.
  14. Alessandra Fogli & Laura Veldkamp, 2008. "Nature or Nurture? Learning and the Geography of Female Labor Force Participation," NBER Working Papers 14097, National Bureau of Economic Research, Inc.
  15. Datcher-Loury, Linda, 1988. "Effects of Mother's Home Time on Children's Schooling," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 367-73, August.
  16. Pål Schøne, 2004. "Labour supply effects of a cash-for-care subsidy," Journal of Population Economics, Springer, vol. 17(4), pages 703-727, December.
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