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The impact of paternity leave on long-term father involvement

Author

Listed:
  • Rege, Mari

    (University of Stavanger)

  • Solli, Ingebor F

    (University of Stavanger)

Abstract

Using Norwegian registry data we investigate how paternity leave affects fathers’ long-term earnings. In 1993 Norway introduced a paternity quota of the paid parental leave. We estimate a difference-in-differences model which exploits differences in fathers' exposure to the paternity quota. Our analysis suggests that four weeks paternity leave during the child’s first year decreases fathers’ future earnings by 2.1 percent. Importantly, this effect persists up until our last point of observation when the child is five years old. The earnings effect is consistent with increased long-term father involvement, as fathers shift time and effort from market to home production. In an investigation of Norwegian time use data we find additional evidence for this hypothesis.
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Suggested Citation

  • Rege, Mari & Solli, Ingebor F, 2010. "The impact of paternity leave on long-term father involvement," UiS Working Papers in Economics and Finance 2010/4, University of Stavanger.
    • Handle: RePEc:hhs:stavef:2010_004
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    References listed on IDEAS

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    1. Pål Schøne, 2004. "Labour supply effects of a cash-for-care subsidy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(4), pages 703-727, December.
    2. Pedro Carneiro & Katrine V. Løken & Kjell G. Salvanes, 2015. "A Flying Start? Maternity Leave Benefits and Long-Run Outcomes of Children," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 365-412.
    3. Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute of Labor Economics (IZA).
    4. Dustmann, Christian & Schönberg, Uta, 2008. "The Effect of Expansions in Maternity Leave Coverage on Children's Long-Term Outcomes," IZA Discussion Papers 3605, Institute of Labor Economics (IZA).
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    Citations

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    Cited by:

    1. Daniel Avdic & Arizo Karimi, 2018. "Modern Family? Paternity Leave and Marital Stability," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 283-307, October.
    2. Gordon B. Dahl & Katrine V. L?ken & Magne Mogstad, 2014. "Peer Effects in Program Participation," American Economic Review, American Economic Association, vol. 104(7), pages 2049-2074, July.
    3. Yu-Fu Chen & Michael Funke, 2010. "Global Warming And Extreme Events: Rethinking The Timing And Intensity Of Environmental Policy," Dundee Discussion Papers in Economics 236, Economic Studies, University of Dundee.
    4. Elisabeth Ugreninov, 2013. "Can Family Policy Reduce Mothers’ Sick Leave Absence? A Causal Analysis of the Norwegian Paternity Leave Reform," Journal of Family and Economic Issues, Springer, vol. 34(4), pages 435-446, December.
    5. Boll, Christina & Leppin, Julian Sebastian & Reich, Nora, 2011. "Einfluss der Elternzeit von Vätern auf die familiale Arbeitsteilung im internationalen Vergleich," HWWI Policy Papers 59, Hamburg Institute of International Economics (HWWI).
    6. Ragni Hege Kitterød & Marit Rønsen, 2013. "Does parenthood imply less specialization than before? Tales from the Norwegian time use surveys 1980-2010," Discussion Papers 757, Statistics Norway, Research Department.
    7. 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.
    8. 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.
    9. Lembcke, Franziska & Nöh, Lukas & Schwarz, Milena, 2021. "Anreizwirkungen des deutschen Steuer- und Transfersystems auf das Erwerbsangebot von Zweitverdienenden," Working Papers 06/2021, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    10. Sara Cools & Jon H. Fiva & Lars J. Kirkebøen, 2015. "Causal Effects of Paternity Leave on Children and Parents," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 801-828, July.
    11. Rieck, Karsten Marshall Elseth, 2012. "Does Child Care Affect Parents’ Sickness Absence? Evidence From A Norwegian Paternity Leave Reform," Working Papers in Economics 14/12, University of Bergen, Department of Economics.
    12. Karsten Marshall Elseth Rieck & Kjetil Telle, 2012. "Sick leave before, during and after pregnancy," Discussion Papers 690, Statistics Norway, Research Department.
    13. Kunze, Astrid, 2016. "The effect of children on earnings inequality among men," VfS Annual Conference 2016 (Augsburg): Demographic Change 145823, Verein für Socialpolitik / German Economic Association.
    14. 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.

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    More about this item

    Keywords

    Household production; Father involvement; paternal leave;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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