Abstract:
The length of parents’ birth-related leave varies across countries and has been subject of some debate. In this paper, I will focus on some potential bene…ts of leave. I investigate the long-term e¤ects on children of increasing the length of parents’birth-related leave using a natural experiment from 1984 in Denmark when the leave length was increased quite suddenly by almost 50% from 14 to 20 weeks. Regression discontinuity design is used to identify the causal e¤ect of the leave reform and to estimate whether there is a measurable, persistent e¤ect on children’s cognitive and educational outcomes at ages 15 and 21. A population sample of Danish children born in the months around implementation of the reform and a dataset with Danish PISA-2000 scores are used for the analysis. Results indicate that increasing parents’ access to birth-related leave has no measurable e¤ect on children’s long-term cognitive outcomes.