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Does child spacing affect children’s outcomes? Evidence from a Swedish reform

Author

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  • Pettersson-Lidbom, Per

    (Departmet of Economics, Stockholm University)

  • Skogman Thoursie, Peter

    (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

In this paper, we provide evidence of whether child spacing affects the future success of children. As an exogenous source of variation in child spacing, we make use of the introduction of an administrative rule in the parental leave benefit system in Sweden. This rule made it possible for a woman to retain her previous high level of parental leave benefits, i.e., 90 percent wage replacement, without entering the labor market between births provided that the interval between the births did not exceed 24 months. The rule had a much larger effect on the birth spacing behavior for native-born mothers compared to foreign-born mothers due to their differential attachment to the labor market. We find that the rule caused a reduction in spacing among native-born mothers as compared to the foreign-born mothers. For individuals born by native-born mothers, the reform also caused a decrease in educational attainment. Thus, this suggests that the effect of spacing children closer has a negative impact on children’s future outcomes. We provide additional evidence that this is likely due to the strong effects of early environment on the capacity for human skill development as discussed by Knutsen et al. (2006).

Suggested Citation

  • Pettersson-Lidbom, Per & Skogman Thoursie, Peter, 2009. "Does child spacing affect children’s outcomes? Evidence from a Swedish reform," Working Paper Series 2009:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2009_007
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    References listed on IDEAS

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    Cited by:

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    3. Golsteyn, Bart H.H. & Magnée, Cécile A.J., 2017. "Does birth spacing affect personality?," Journal of Economic Psychology, Elsevier, vol. 60(C), pages 92-108.
    4. Åslund, Olof & Grönqvist, Hans, 2010. "Family size and child outcomes: Is there really no trade-off?," Labour Economics, Elsevier, vol. 17(1), pages 130-139, January.
    5. Cygan-Rehm, Kamila, 2013. "Earnings-Dependent Parental Leave Benefit and Fertility: Evidence from Germany," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80021, Verein für Socialpolitik / German Economic Association.
    6. Kamila Cygan-Rehm, 2016. "Parental leave benefit and differential fertility responses: evidence from a German reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 73-103, January.
    7. Liu Qian & Skans Oskar Nordstrom, 2010. "The Duration of Paid Parental Leave and Children's Scholastic Performance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-35, January.
    8. Ghosh, Prabhat & Kochar, Anjini, 2018. "Do welfare programs work in weak states? Why? Evidence from a maternity support program in India," Journal of Development Economics, Elsevier, vol. 134(C), pages 191-208.
    9. Kieron J. Barclay & Martin Kolk, 2018. "Birth Intervals and Health in Adulthood: A Comparison of Siblings Using Swedish Register Data," Demography, Springer;Population Association of America (PAA), vol. 55(3), pages 929-955, June.
    10. Kieron J. Barclay & Ken R. Smith, 2020. "The effects of birth spacing on health and socioeconomic outcomes across the life course: evidence from the Utah Population Database," MPIDR Working Papers WP-2020-038, Max Planck Institute for Demographic Research, Rostock, Germany.
    11. Nancy Qian, 2009. "Quantity-Quality and the One Child Policy:The Only-Child Disadvantage in School Enrollment in Rural China," NBER Working Papers 14973, National Bureau of Economic Research, Inc.
    12. Kieron J. Barclay & Martin Kolk, 2017. "The Long-Term Cognitive and Socioeconomic Consequences of Birth Intervals: A Within-Family Sibling Comparison Using Swedish Register Data," Demography, Springer;Population Association of America (PAA), vol. 54(2), pages 459-484, April.

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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

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