Time, Money, and Infant Health: The Consequences of Paid Parental Leave

Alexandra de Gendre (), Maryam Naghsh Nejad () and Serena Yu ()
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Alexandra de Gendre: University of Melbourne
Maryam Naghsh Nejad: University of Technology, Sydney
Serena Yu: University of Technology, Sydney

No 19083, IZA Discussion Papers from IZA Network @ LISER

Abstract: We estimate the effects of introducing paid parental leave on infant health and health care use in a setting with universal access to health care. We exploit Australia’s 2011 reform through a regression discontinuity difference-in-differences design and administrative records covering all New South Wales births. We find a 1.3 and 1.2 percentage points decline in probability of any specialist visits and any prescription medications in the first year, and no effects on hospital and emergency presentations. The reduction in any medication use persists until age five and the reduction in specialist visits is concentrated among young mothers who were least likely to have had employer leave and among clinically high-risk births. Survey data suggest that the reform eased financial strain and preserved employment, pointing to improved parental resources and time.

Keywords: paid parental leave; infant health; healthcare utilisation; regression discontinuity difference-in-differences (search for similar items in EconPapers)
JEL-codes: I11 I18 I38 J13 J22 (search for similar items in EconPapers)
Date: 2026-11
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