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Paid Parental Leave and Families' Living Arrangements

Author

Listed:
  • Cygan-Rehm, Kamila

    () (University of Erlangen-Nuremberg)

  • Kühnle, Daniel

    () (University of Erlangen-Nuremberg)

  • Riphahn, Regina T.

    () (University of Erlangen-Nuremberg)

Abstract

We examine how a paid parental leave reform causally affected families' living arrangements. The German reform we examine replaced a means-tested benefit with a universal transfer paid out for a shorter period. Combining a regression discontinuity with a difference-in-differences design, we find that the reform increased the probability that a newborn lives with non-married cohabiting parents. This effect results from a reduced risk of single parenthood among women who gained from the reform. We reject the economic independence hypothesis and argue that the reform effects for those who benefited from the reform are consistent with hypotheses related to the improved financial situation of new mothers after the reform and increased paternal involvement in childcare.

Suggested Citation

  • Cygan-Rehm, Kamila & Kühnle, Daniel & Riphahn, Regina T., 2018. "Paid Parental Leave and Families' Living Arrangements," IZA Discussion Papers 11533, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11533
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    More about this item

    Keywords

    parental leave; living arrangements; marriage; cohabitation; single motherhood; child well-being; early childhood;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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