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Parental Investments in Early Life and Child Outcomes. Evidence from Swedish Parental Leave Rules

Rita Ginja (), Jenny Jans () and Arizo Karimi ()
Additional contact information
Jenny Jans: Department of Statistics, Uppsala University
Arizo Karimi: Department of Economics, Uppsala University, https://katalog.uu.se/profile/?id=N8-1030

No 17/17, Working Papers in Economics from University of Bergen, Department of Economics

Abstract: We study how parental resources early in life affect children’s health and education exploiting the so-called speed premium (SP) in the Swedish parental leave system. The SP grants mothers higher parental leave benefits for the subsequent child without re-establishing eligibility through pre-birth market work if the two births occur within a pre-specified interval. This allow us to use a Regression Discontinuity framework. We find that the SP improves the educational outcomes of the first-born child, but not of the second-born. Impacts are driven by a combination of a positive income shock, and substitution from informal care to maternal time.

Keywords: Parental leave; earnings; time investments; child outcomes (search for similar items in EconPapers)
JEL-codes: J13 J18 J22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem and nep-hea
Date: 2017-10-29
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Working Paper: Parental Investments in Early Life and Child Outcomes: Evidence from Swedish Parental Leave Rules (2017) Downloads
Working Paper: Parental Investments in Early Life and Child Outcomes: Evidence from Swedish Parental Leave Rules (2017) Downloads
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