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Paid Parental Leave and Families' Living Arrangements

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  • Cygan-Rehm, Kamila

    (Dresden University of Technology)

  • Kühnle, Daniel

    (University of Duisburg-Essen)

  • 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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11533
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    Cited by:

    1. Alena Bicakova & Klara Kaliskova, 2022. "Is Longer Maternal Care Always Beneficial? The Impact of a Four-year Paid Parental Leave," CERGE-EI Working Papers wp732, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    2. Frodermann, Corinna & Wrohlich, Katharina & Zucco, Aline, 2020. "Parental leave reform and long-run earnings of mothers," IAB-Discussion Paper 202009, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Wrohlich, Katharina & Zucco, Aline, 2023. "15 Jahre Elterngeld: Auswirkungen und Reformoptionen," Working Paper Forschungsförderung 281, Hans-Böckler-Stiftung, Düsseldorf.
    4. Ann-Marie Sommerfeld, 2023. "The Effect of Schooling on Parental Integration: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 1198, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Ann-Marie Sommerfeld, 2023. "The Effect of Schooling on Parental Integration," Jena Economics Research Papers 2023-018, Friedrich-Schiller-University Jena.
    6. Fontenay, Sébastien & Tojerow, Ilan, 2020. "Work Disability after Motherhood and How Paternity Leave Can Help," IZA Discussion Papers 13756, Institute of Labor Economics (IZA).
    7. Anna Raute & Andrea Weber & Galina Zudenkova, 2022. "Can public policy increase paternity acknowledgment? Evidence from earnings-related parental leave," RF Berlin - CReAM Discussion Paper Series 2206, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    8. Frodermann, Corinna & Wrohlich, Katharina & Zucco, Aline, 2023. "Parental Leave Policy and Long-run Earnings of Mothers," Labour Economics, Elsevier, vol. 80(C).
    9. Anna Moring & Johanna Lammi-Taskula, 2021. "Parental Leave Reforms in Finland 1977–2019 from a Diversity Perspective," Social Inclusion, Cogitatio Press, vol. 9(2), pages 338-349.
    10. Sergii Maksymovych, 2023. "The Impact of the Firstborn Gender on Family Formation and Dissolution: Evidence from Russia," CERGE-EI Working Papers wp765, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    11. Canaan, Serena, 2022. "Parental leave, household specialization and children’s well-being," Labour Economics, Elsevier, vol. 75(C).
    12. Zimmert, Franziska & Zimmert, Michael, 2020. "Paid parental leave and maternal reemployment: Do part-time subsidies help or harm?," Economics Working Paper Series 2002, University of St. Gallen, School of Economics and Political Science.

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    More about this item

    Keywords

    single motherhood; cohabitation; marriage; living arrangements; parental leave; child well-being; early childhood;
    All these keywords.

    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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