Parental Leave Benefits, Household Labor Supply, and Children’s Long-Run Outcomes

Rita Ginja, Jenny Jans and Arizo Karimi

Journal of Labor Economics, 2020, vol. 38, issue 1, 261 - 320

Abstract: 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.

Date: 2020
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Working Paper: Parental leave benefits, household labor supply, and children's long-run outcomes (2018)
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