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Parental Leave Benefits, Household Labor Supply, and Children's Long-Run Outcomes
Univ Bergen, Bergen, Norway;Uppsala Center for Labor Studies, Uppsala, Sweden;Inst Lab Econ IZA, Bonn, Germany.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation. UCLS, Uppsala, Swedeny.
2020 (English)In: Journal Labor Economics, ISSN 0734-306X, E-ISSN 1537-5307, Vol. 38, no 1, p. 261-320Article in journal (Refereed) Published
Abstract [en]

We study how parental leave benefit levels affect household labor supply, family income, and child outcomes, exploiting the speed premium (SP) in the Swedish leave system. The SP grants mothers higher benefits for a subsequent child without reestablishing eligibility through market work if two births occur within a prespecified interval. We use the spacing eligibility cutoffs in a regression discontinuity framework and find that the SP improves educational outcomes of the older child but not those of the younger. Impacts are likely driven by increased maternal time and the quality of maternal time relative to the counterfactual mode of care.

Place, publisher, year, edition, pages
UNIV CHICAGO PRESS , 2020. Vol. 38, no 1, p. 261-320
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-403247DOI: 10.1086/704615ISI: 000506160500008OAI: oai:DiVA.org:uu-403247DiVA, id: diva2:1389005
Funder
The Jan Wallander and Tom Hedelius FoundationAvailable from: 2020-01-28 Created: 2020-01-28 Last updated: 2020-01-28Bibliographically approved

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