IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp15640.html
   My bibliography  Save this paper

Is Longer Maternal Care Always Beneficial? The Impact of a Four-Year Paid Parental Leave

Author

Listed:
  • Bicakova, Alena

    (CERGE-EI)

  • Kaliskova, Klara

    (Prague University of Economics and Business)

Abstract

We study the impact of an extension of paid family leave from 3 to 4 years on child long- term outcomes. Using a difference-in-differences design and comparing the first-affected with the last-unaffected cohorts of children, we find that an additional year of maternal care at the age of 3, which primarily crowded out enrollment into public kindergartens, had an adverse effect for children of low-educated mothers on human capital investments and labor-market attachment in early adulthood. The affected children were 12 p.p. more likely not to be in education, employment, or training (NEET) at the age of 21-22. The impact on daughters was larger and driven by a lower probability of attending college and higher probability of home production. Sons of low-educated mothers, on the other hand, were less likely to be employed. The results suggest that exposure to formal childcare may be more beneficial than all-day maternal care at the age of 3, especially for children with a lower socio-economic background.

Suggested Citation

  • Bicakova, Alena & Kaliskova, Klara, 2022. "Is Longer Maternal Care Always Beneficial? The Impact of a Four-Year Paid Parental Leave," IZA Discussion Papers 15640, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp15640
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp15640.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 205-230, Winter.
    2. Bertrand, Marianne, 2011. "New Perspectives on Gender," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 17, pages 1543-1590, Elsevier.
    3. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    4. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2024. "Do Family Policies Reduce Gender Inequality? Evidence from 60 Years of Policy Experimentation," American Economic Journal: Economic Policy, American Economic Association, vol. 16(2), pages 110-149, May.
    5. Alzbeta Mullerova, 2017. "Family policy and maternal employment in the Czech transition: a natural experiment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(4), pages 1185-1210, October.
    6. repec:hal:spmain:info:hdl:2441/1a68qg411o9bg9jp7fhgh60n5p is not listed on IDEAS
    7. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, vol. 102(5), pages 1927-1956, August.
    8. Michael Baker & Kevin Milligan, 2015. "Maternity leave and children’s cognitive and behavioral development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 373-391, April.
    9. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    10. 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.
    11. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    12. Natalia Danzer & Martin Halla & Nicole Schneeweis & Martina Zweimüller, 2022. "Parental Leave, (In)formal Childcare, and Long-Term Child Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 57(6), pages 1826-1884.
    13. Steffen Müller & Regina T. Riphahn & Caroline Schwientek, 2017. "Paternal unemployment during childhood: causal effects on youth worklessness and educational attainment," Oxford Economic Papers, Oxford University Press, vol. 69(1), pages 213-238.
    14. Grübl, Dominik & Lackner, Mario & Winter-Ebmer, Rudolf, 2020. "Intergenerational Transmission of Unemployment - Causal Evidence from Austria," IHS Working Paper Series 14, Institute for Advanced Studies.
    15. Andreas Steinhauer, 2018. "Working Moms, Childlessness, and Female Identity," Working Papers hal-03475468, HAL.
    16. Rasmussen, Astrid Würtz, 2010. "Increasing the length of parents' birth-related leave: The effect on children's long-term educational outcomes," Labour Economics, Elsevier, vol. 17(1), pages 91-100, January.
    17. Loeb, Susanna & Bridges, Margaret & Bassok, Daphna & Fuller, Bruce & Rumberger, Russell W., 2007. "How much is too much? The influence of preschool centers on children's social and cognitive development," Economics of Education Review, Elsevier, vol. 26(1), pages 52-66, February.
    18. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2019. "Child Penalties across Countries: Evidence and Explanations," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 122-126, May.
    19. 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.
    20. Eckhoff Andresen, Martin & Havnes, Tarjei, 2019. "Child care, parental labor supply and tax revenue," Labour Economics, Elsevier, vol. 61(C).
    21. Pinjas Albagli & Tomás Rau, 2019. "The Effects of a Maternity Leave Reform on Children's Abilities and Maternal Outcomes in Chile," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1015-1047.
    22. Jorge Luis García & James J. Heckman & Duncan Ermini Leaf & María José Prados, 2020. "Quantifying the Life-Cycle Benefits of an Influential Early-Childhood Program," Journal of Political Economy, University of Chicago Press, vol. 128(7), pages 2502-2541.
    23. Nina Drange & Tarjei Havnes, 2019. "Early Childcare and Cognitive Development: Evidence from an Assignment Lottery," Journal of Labor Economics, University of Chicago Press, vol. 37(2), pages 581-620.
    24. Huebener, Mathias & Kuehnle, Daniel & Spiess, C. Katharina, 2019. "Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 61.
    25. 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.
    26. Jens Dietrichson & Ida Lykke Kristiansen & Bjørn A. Viinholt, 2020. "Universal Preschool Programs And Long‐Term Child Outcomes: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1007-1043, December.
    27. Canaan, Serena, 2022. "Parental leave, household specialization and children’s well-being," Labour Economics, Elsevier, vol. 75(C).
    28. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    29. Grace E. Noboa-Hidalgo & Sergio S. Urzúa, 2012. "The Effects of Participation in Public Child Care Centers: Evidence from Chile," Journal of Human Capital, University of Chicago Press, vol. 6(1), pages 1-34.
    30. repec:cai:poeine:pope_304_0451 is not listed on IDEAS
    31. Joshua D Gottlieb & Richard R Townsend & Ting Xu, 2022. "Does Career Risk Deter Potential Entrepreneurs?," The Review of Financial Studies, Society for Financial Studies, vol. 35(9), pages 3973-4015.
    32. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation," Working Papers 811, Queen Mary University of London, School of Economics and Finance.
    33. Steinhauer, Andreas, 2018. "Working Moms, Childlessness, and Female Identity," CEPR Discussion Papers 12929, C.E.P.R. Discussion Papers.
    34. Cygan-Rehm, Kamila & Kuehnle, Daniel & Riphahn, Regina T., 2018. "Paid parental leave and families’ living arrangements," Labour Economics, Elsevier, vol. 53(C), pages 182-197.
    35. Herbst, Chris M., 2013. "The impact of non-parental child care on child development: Evidence from the summer participation “dip”," Journal of Public Economics, Elsevier, vol. 105(C), pages 86-105.
    36. Felfe, Christina & Lalive, Rafael, 2018. "Does early child care affect children's development?," Journal of Public Economics, Elsevier, vol. 159(C), pages 33-53.
    37. Christian Dustmann & Uta Schönberg, 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.
    38. Anna Lovász & Ágnes Szabó-Morvai, 2019. "Childcare availability and maternal labor supply in a setting of high potential impact," Empirical Economics, Springer, vol. 56(6), pages 2127-2165, June.
    39. Margherita Fort & Andrea Ichino & Giulio Zanella, 2020. "Cognitive and Noncognitive Costs of Day Care at Age 0–2 for Children in Advantaged Families," Journal of Political Economy, University of Chicago Press, vol. 128(1), pages 158-205.
    40. Uta Schönberg & Johannes Ludsteck, 2014. "Expansions in Maternity Leave Coverage and Mothers' Labor Market Outcomes after Childbirth," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 469-505.
    41. Tarjei Havnes & Magne Mogstad, 2011. "No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 97-129, May.
    42. Rossin, Maya, 2011. "The effects of maternity leave on children's birth and infant health outcomes in the United States," Journal of Health Economics, Elsevier, vol. 30(2), pages 221-239, March.
    43. Chiara Pronzato, 2009. "Return to work after childbirth: does parental leave matter in Europe?," Review of Economics of the Household, Springer, vol. 7(4), pages 341-360, December.
    44. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 205-230, Winter.
    45. Mathias Huebener, 2016. "Parental Leave Policies and Child Development: A Review of Empirical Findings," DIW Roundup: Politik im Fokus 102, DIW Berlin, German Institute for Economic Research.
    46. Mathias Huebener & Daniel Kuehnle & C. Katharina Spiess, 2017. "Paid Parental Leave and Child Development: Evidence from the 2007 German Parental Benefit Reform and Administrative Data," Discussion Papers of DIW Berlin 1651, DIW Berlin, German Institute for Economic Research.
    47. Barbara Pertold-Gebicka, 2020. "Parental leave length and mothers’ careers: what can be inferred from occupational allocation?," Applied Economics, Taylor & Francis Journals, vol. 52(9), pages 879-904, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alena Bičáková & Klára Kalíšková, 2024. "Is longer maternal care always beneficial? The impact of a 4-year paid parental leave," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-45, June.
    2. Canaan, Serena, 2022. "Parental leave, household specialization and children’s well-being," Labour Economics, Elsevier, vol. 75(C).
    3. Huebener, Mathias & Kuehnle, Daniel & Spiess, C. Katharina, 2019. "Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data," Labour Economics, Elsevier, vol. 61(C).
    4. Gordon Dahl & Katrine Loken, 2024. "Families, Public Policies, and the Labor Market," RF Berlin - CReAM Discussion Paper Series 2423, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Mette Goertz & Vibeke Myrup Jensen & Sarah Sander, 2023. "Daycare Enrollment Age and Child Development," CEBI working paper series 22-26, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    6. Chuard, Caroline, 2023. "Negative effects of long parental leave on maternal health: Evidence from a substantial policy change in Austria," Journal of Health Economics, Elsevier, vol. 88(C).
    7. Mathias Huebener & Daniel Kuehnle & C. Katharina Spiess, 2017. "Paid Parental Leave and Child Development: Evidence from the 2007 German Parental Benefit Reform and Administrative Data," Discussion Papers of DIW Berlin 1651, DIW Berlin, German Institute for Economic Research.
    8. 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.
    9. Gruber, Jonathan & Huttunen, Kristiina & Kosonen, Tuomas, 2022. "Paying Moms to Stay Home: Short and Long Run Effects on Parents and Children," Working Papers 151, VATT Institute for Economic Research.
    10. Houmark, Mikkel Aagaard & Jørgensen, Cecilie Marie Løchte & Kristiansen, Ida Lykke & Gensowski, Miriam, 2022. "Effects of Extending Paid Parental Leave on Children's Socio-Emotional Skills and Well-Being in Adolescence," IZA Discussion Papers 15421, Institute of Labor Economics (IZA).
    11. Rauh, Christopher & Boneva, Teodora & Kaufmann, Katja, 2021. "Maternal labor supply: Perceived returns, constraints, and social norms," CEPR Discussion Papers 16095, C.E.P.R. Discussion Papers.
    12. Brenøe, Anne Ardila & Canaan, Serena & Harmon, Nikolaj & Royer, Heather, 2019. "Is Parental Leave Costly for Firms and Coworkers?," IZA Discussion Papers 12870, Institute of Labor Economics (IZA).
    13. Ginja, Rita & Jans, Jenny & Karimi, Arizo, 2017. "Parental Investments in Early Life and Child Outcomes. Evidence from Swedish Parental Leave Rules," Working Papers in Economics 17/17, University of Bergen, Department of Economics.
    14. Nabanita Datta Gupta & Jonas Jessen, 2023. "Maternity leave versus early childcare—What are the long-term consequences for children?," IZA World of Labor, Institute of Labor Economics (IZA), pages 438-438, May.
    15. Chuard, Caroline, 2020. "Womb at work: The missing impact of maternal employment on newborn health," Journal of Health Economics, Elsevier, vol. 73(C).
    16. Simon Rabaté & Sara Rellstab, 2022. "What Determines the Child Penalty in the Netherlands? The Role of Policy and Norms," De Economist, Springer, vol. 170(2), pages 195-229, May.
    17. Katrin Huber, 2019. "Changes in parental leave and young children’s non-cognitive skills," Review of Economics of the Household, Springer, vol. 17(1), pages 89-119, March.
    18. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2021. "Does Biology Drive Child Penalties? Evidence from Biological and Adoptive Families," American Economic Review: Insights, American Economic Association, vol. 3(2), pages 183-198, June.
    19. Sarah H. Bana & Kelly Bedard & Maya Rossin‐Slater, 2020. "The Impacts of Paid Family Leave Benefits: Regression Kink Evidence from California Administrative Data," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(4), pages 888-929, September.
    20. Francesca Carta, 2019. "Female labour supply in Italy: the role of parental leave and child care policies," Questioni di Economia e Finanza (Occasional Papers) 539, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    Keywords

    human capital; child outcomes; subsidized childcare; maternal care; family leave; labor-market attachment;
    All these keywords.

    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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp15640. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.