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Love your Leave, Don't Leave your Love! Paid Parental Leave and Children's Living Arrangements

Kamila Cygan-Rehm, Daniel Kühnle and Regina Riphahn ()
Authors registered in the RePEc Author Service: Daniel Kuehnle ()

No 6319, CESifo Working Paper Series from CESifo Group Munich

Abstract: We examine how a German paid parental leave reform causally affected early childhood living arrangements. The reform replaced a means-tested benefit with a universal transfer paid out for a shorter period. Using a difference-in-differences design, we find that the reform increased the probability that a newborn lives with non-married cohabiting parents. This effect results from a reduced risk of single parenthood among women who gained from the reform. We reject the economic independence hypothesis and argue that the effects for reform winners are consistent with alternative hypotheses related to increased female financial attractiveness and increased paternal involvement in childcare.

Keywords: parental leave; living arrangements; marriage; cohabitation; single motherhood; child well-being; early childhood (search for similar items in EconPapers)
JEL-codes: J12 J13 J18 I30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem and nep-eur
Date: 2017
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